Analysts at Citi Group remain optimistic on the USD/JPY price outlook, despite the latest Omicron covid variant-led fears, suggesting that the ‘buy the dips’ strategy will remain in play.

Key quotes

“We don't think the downside for USDJPY will expand beyond the 100-day moving average (around 111.6) in this phase, while still seeing the risk that the pair will bounce back to the recent high of around 115.5 over the next few weeks.”

“Buy-on-dip will be the valid tactic in this adjustment period triggered by the Omicron variant.” 

• USD/JPY looks to regain 113.00 amid softer yields, Omicron fears