JPY: Fundamentals Still JPY Supportive; Japan Unlikely To Push Back On Further Strength

Citi Research discusses JPY outlook and maintains a bullish bias, expecting safe-havens demand to remain for longer. 
"Japan is also unlikely to push back on JPY strength as - (1) JPY remains the primary beneficiary of rising risk aversion and global dovishness; (2) TAG negotiations are expected to conclude in September, so Japan may be reluctant to antagonize the Trump administration in the meanwhile; (3) Japanese institutional investors including lifers lower their targets towards 100 to buy FX hedges," Citi notes. 
"Citi analysts remain skeptical the BoJ will cut policy rates anytime soon," Citi adds.