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Citi write "USD/JPY may have further.....>

DOLLAR-YEN
DOLLAR-YEN: Citi write "USD/JPY may have further to fall per the latest CitiFX
Flows & Positioning indicator. After having been short, the overall market is
now currently neutrally positioned in JPY. However, there remains large
divergence in the flow, with leveraged investors having recently turned heavily
long JPY while real money and retail are still short. Given that there tends to
be a lead-lag relationship between leveraged and real money flows, we think the
former will start unwinding that short JPY. The pair closed below Y109.70. This
marks a bearish break that would suggest a move to the double top target of
Y107.25."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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