Citi discusses JPT technical outlook and prefers buying JPY crosses on dips than trading USD/JPY around current levels.
"USDJPY flashing more red than the Japanese flag. Our Asia trader also notes that the USD leg continues to drive the pair. XXXJPY on the other side, trades solidly across on the back of not solid equity but also some local interest.
"Expect USDJPY to stay around here 105/106.50 range for now. And now it seems extra difficult for USDJPY to go another leg lower quickly as it seems the market went short last week. Prefer to add XXXJPY on dip than touching USDJPY here," Citi notes.