Citi forecasts USDJPY to return to ¥145/$ amid trade talks By Investing.com

Investing.com -- Citi analysts provided insights into the anticipated US-Japan trade negotiations,International foreign exchange trading platform company focusing on the currency dynamics between the US dollar and the Japanese yen. The firm believes that correcting the yen’s weakness will be a central topic during these discussions.

While the US might have an exchange rate target of ¥100 per US dollar in mind, Citi suggests that a more likely compromise could be around ¥120 per US dollar. The analysts at Citi expect that the Bank of Japan (BoJ) will lean towards monetary normalization as opposed to the Ministry of Finance (MoF) engaging in US dollar-selling intervention.

This week’s talks between US Treasury Secretary Bessent and Japanese Finance Minister Kato are not anticipated to produce significant market-moving news. This outlook comes in the wake of volatility in US markets triggered by the implementation of new tariffs in April.

Citi projects that the USDJPY currency pair will continue to exhibit a descending triangle pattern, with a lower boundary at ¥140 per US dollar. Over the coming weeks, the firm is prepared for a potential rebound to ¥145 per US dollar. Despite this short-term outlook, Citi maintains a bearish perspective on the USD/JPY pair for the longer term.

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