# USD/JPY - FX Options Primed For More USD/JPY Downside

> Citi said it favors a stronger yen and sees room for USD/JPY to fall, citing technical constraints, possible unwinding of currency hedges, and a shift in the Bank of Japan’s policy focus. Japan’s GPIF reported a ¥5.25 trillion second-quarter loss but left its asset allocation targets unchanged; the government has discussed, but not decided on, shifting the fund toward domestic assets.

- Date: 2026-11-06 · published 2026-11-06T18:15:39.211Z
- Category: macro · region Japan · magnitude low
- Page: https://feedsoft.ai/events/84494-usd-jpy-fx-options-primed-for-more-usd-jpy-downside
- Commodities: [Japanese Yen (JPY per USD)](https://feedsoft.ai/c/USDJPY.md)

## Why it matters

Expectations of a firmer yen or faster Japanese rate increases could weigh on USD/JPY and alter the yen cost of dollar-priced imports. The fund’s unchanged targets limit the immediate impact of the domestic-asset allocation discussion.

## Read by commodity

- USDJPY: bearish ▼

## Sources

- efxdata.com: https://www.efxdata.com/insights/6769a62a7f37b111e02d72f35eb2c4ce.html

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.