Citi Sees Dollar-Yen Fair Value Near Current Levels, Predicts Sub-¥155 Correction by Year-End
Citi's valuation models produce fair value estimates for USD-JPY around ¥161 using data spanning 2017-2025 and ¥159 when restricting the sample to 2023-2025. The bank finds no clear distortion in market pricing, notes offsetting forces from Japanese equity strength and interest rate spread contraction, and anticipates a corrective move to below ¥15…