Stock Market

Story: Citi Says Brent Crude Will Keep USD/JPY Above Moving Average

By Sydney TheCMO

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Economic Impact on Japan. A weak yen cuts both ways for Japan's economy. Sure, it makes Japanese exports cheaper overseas,…

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Technical Levels and Market Watch. The 200-day moving average matters a lot in technical analysis.

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Citi thinks oil prices will prop up the dollar against the yen. The bank's Monday report shows Brent crude should keep USD/JPY above a key technical level that traders watch…

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Oil and the yen don't get along well, basically because Japan imports tons of crude. When Brent rises, Japan pays more for energy, and that hurts the yen.

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Japan's energy dependency creates real problems.

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Citi figures as long as Brent stays strong, USD/JPY will probably remain above the 200-day moving average.

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A weak yen cuts both ways for Japan's economy. Sure, it makes Japanese exports cheaper overseas, which helps companies sell more stuff abroad.

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Japan's central bank has kept interest rates super low for years, trying to fight deflation and get growth going again.

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The ministry of finance expressed concerns about yen weakness on April 8. A spokesperson talked about the challenges of managing rising import costs, particularly in energy.

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The 200-day moving average matters a lot in technical analysis. Citi's report calls this level a significant marker for USD/JPY.

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Market players are also keeping an eye on geopolitical stuff, like tensions in oil-producing regions.

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As of April 10, Citi analysts also highlighted OPEC's production decisions as a potential game-changer for Brent crude prices.

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U.S. shale oil production levels will play a big role too. The United States has become a major player in global oil markets, and any shifts in its production could either help…

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Traders are also paying attention to the Bank of Japan's upcoming policy meeting later this month.

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On April 7, the BOJ released a statement reaffirming its commitment to maintaining current monetary policy.

The Currency Analytics

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