Citi discusses USD/JPY outlook after breaking 115.
"JPY broke 115 during the Asia session, marking the highest level since March 2017. As we noted in USDJPY Breaks 115, despite Japanese participants being out for Labour Thanksgiving Day, the higher US yields in the wake of Powell’s nomination for a second term as Fed chair fuelled the march higher in USDJPY," Citi notes.
"CitiFX has noted Japanese exporters are likely to increase USD selling hedges, which could slow down the JPY depreciation above 115. From the technical analysis view point, the upside for USDJPY has expanded to around the 2016 high of just over 118, after it renewed its YTD high last week," Citi adds.