Citi discusses USD/JPY technical outlook and sees a scope for a tactical decline over the coming weeks.
"Four signals have now emerged that point to the peaking out in USDJPY. The pair dropped below the 21d MA last week that had functioned as the substantial support this year, while US Dollar weakness has resumed overall again. With this price move, it has become more likely that the pair’s uptrend since the beginning of the year has peaked out late last month," Citi notes.
"The 50d MA (around 107.5 now) had been a resistance line during the second half of last year, and it now looks likely to convert to a support line...We put the downside target on this moving average over the next few weeks, though we see the risk of another decline toward the 200d MA (currently around 105.6) throughout this quarter," Citi adds.