Dollar/yen is moving higher, trading close to the cycle highs. Can it make the break? Here is the view from SocGen:
Here is their view, courtesy of eFXnews:
Societe Generale Cross Asset Strategy Research discusses USD/JPY outlook, noticing that real yield differentials are back in the driver’s seat.
“Bond markets are showing every sign of being stuck in their range, and UJS 10s get stuck at 2.4%, yet again. Still, Japanese real yields are trending lower again and that can help the spread, and long USD.JPY here is a decent way of positioning for any upward pressure on US yields (whether from hawkish Fed soundbites, decent US data or last-minute nerves about who President Trump chooses to be Fed Chair,” SocGen adds.
“USD/JPY 114.50 is the current chart-point-to-watch, while with oil prices looking so buoyant, buying CAD/JPY after the CAD dip,” SocGen advises.
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