Jan. 14 (Bloomberg) -- Investors should buy the Canadian dollar versus the yen because a “slight appreciation” in the Japanese currency offers a chance to bet against it, according to Citigroup Inc.

The bank recommended betting on the Canadian currency from 88.65 yen, with a target of 94 yen, strategists Todd Elmer in New York and Michael Hart in London wrote in a note to clients today. That would represent a gain of 6 percent.

Canada’s dollar appreciated 0.1 percent to 88.76 yen at 11:21 a.m. in Toronto, from 88.63 yesterday. It closed at 90.23 yen on Jan. 7 before falling for three days.

To contact the reporter on this story: Chris Fournier in Montreal at cfournier3@bloomberg.net

Last Updated: January 14, 2010 11:23 EST