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USD/JPY to be Contained Until UK’s EU Referendum: Citi

In a strategy note on the dollar yen, released on 2nd June, Citigroup's FX strategy unit write: 

USDJPY remains heavy but appears to have found a near term base at the 109.00 figure.

Many reasons seen for the USDJPY selloff following the confirmation of the sales tax delay but the most plausible seems to be the shift in focus on Brexit-related risks where real concerns appear to be emerging about a late surge for the “Leave” camp.

The 110.67/111.50 area remains major resistance and looks unlikely to be breached ahead of EU Brexit Referendum with 109.00/20 seen as initial support followed by 108.00/ 20.