Credit Suisse discusses USD/JPY outlook and outlines the following 2 reasons holding off long positions:
"1. Long USDJPY and also cross -JPY still seems to be a favourite structural position, both anecdotally and also looking at indicators like IMM speculative positioning. 2. Despite the sharp drop in US – Japan yield differentials and also US real yields this month, USDJPY has mostly held above the 110 level, encouraged by generally low FX / asset price volatility, still -tight US credit spreads and new record highs for US equities," CS notes.
"In short, trade location has simply not been attractive to go long given macro developments and positioning risks," CS adds.