Citi sees Bank of Japan meeting pushing USD/JPY to 165

Citi expects the Bank of Japan to leave its policy rate unchanged at the upcoming meeting, but sees the press conference as the key market event. The bank says political pressure on BOJ independence and uncertainty over Japan’s intervention stance could weigh on the yen. Citi believes the balance of risks is skewed toward yen weakness and sees USD/JPY rising toward 165 in the near term. The call implies further downside for the yen if policymakers signal tolerance for a weaker currency or remain vague on intervention. The article is a bullish USD/JPY view and bearish on the Japanese yen, driven by policy and political developments rather than current price action.