Danske Research discusses USD/JPY tactical bearish and maintains a bearish bias in the near-term.
"We maintain a negative USD/JPY bias short term. We do not see the tariff delay as a game changer for souring risk sentiment," Danske notes.
"Short USD/JPY is not (yet) a crowded trade according to recent positioning data, and, notably, the correlation of the cross with risk sentiment looks cleaner in USD/JPY compared to e.g. EUR/USD," Danske adds.