Citi are going short USDJPY at Y110.83,.......>

FOREX: Citi are going short USDJPY at Y110.83, stop loss at Y112.40, targeting a

potential move as far as Y104.55-85. They note interim support is likely around

Y107-107.50 and are utilising 20% of capital.

- Citi add, we have seen a 76.4% hold; a bearish outside week and now look to be

forming a double top with a neckline at 109.75-80.- US yields are softening

again, commodities are looking heavy (energy and industrial metals in

particular) and we still believe we remain susceptible to another "risk wobble"

post Fed and also possibly on the Trade front.

- In addition on the flow side our Strategy/Quant teams point out that the

market covered a lot of its JPY shorts over the last week, with positioning now

at -2 from -5 previously. However, all of the short covering came from the

leveraged community; real money and retail are still short. Given that leveraged

flow tends to lead real money flow, we believe that there is scope for JPY

strength to extend this week - especially if trade tensions remain high.

- Citi also retain their long USDCAD (20% at C$1.3351) and short AUDUSD (20% at

$0.7086).