Citibank Spot Desk likes long AUDJPY and USDJPY

The moves in Japanese equities, US rates and gold have reversed enough that I think USDJPY will go higher over the next week or so. This is obviously contingent on a Remain UK Referendum vote. My point with this email is to show how USDJPY has deviated significantly from the usual measures of short term fair value.

Take a look at these two charts. They both suggest we should be above 106.00 by Monday on a Remain vote.

I’m long AUDJPY and USDJPY here risking new lows (under 103.50 USDJPY).

It is very hard to carry it through Brexit so I will decide what to do Thursday if I’m not stopped out.

(Citibank, Brent Donnelly)

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