Citi: Expect USD/JPY at 95 as intervention fears recede

According to Citigroup Inc., the world’s largest foreign-exchange trader, the Japanese currency is expected to rise further to 95 levels against its American rival over the next month, as fears over intervention from the Japanese government or the BOJ recede.

Bloomberg quoted, “Japan intervened in currency markets three times in 2011 in an effort to halt gains that drove the exchange rate to a peak of 75.35 per dollar. The yen still ended 2011 as the best performer among developed-nation currencies.”

Todd Elmer, Citigroup’s head of G-10 foreign-exchange strategy for Asia ex-Japan, said that the yen will probably reach 95 before the BOJ meets on Sept. 21 unless investors are convinced the authorities will move beyond the policy steps that have been unveiled so far.