Spot at 87.81, up 15 pips today
Analysts at CitiFX suggest buying AUD/JPY as their trade of the week. They expect yen shorts to add to positions ahead of the BOJ decision on Friday.
It hinges on the BOJ easing, something Citi expects them to do sometime over the next four meetings and most likely this week.
In general they say yen shots look attractive while AUD is being support by more resilient risk appetite and PBOC easing. Baring a very soft CPI, they don’t see much risk of the RBA easing next week.
Overall, they suggest buying at 87.72 with a target at 89.85 and a stop at 86.40.