Societe Generale Research some of its current FX views and maintains a short EUR/JPY position* targeting a move towards 116, and flags a scope for short GBP/JPY exposure.
"Trade uncertainty has picked up a notch and President Trump is scheduled to make a statement on trade with the EU later...In the FX market, USD/JPY is once again testing post Jan 3rd lows at 107, while the Swiss franc is stronger too. The euro is largely unmoved, repeating its traditional trick of making a new low but not following through with much energy," SocGen notes.
"The best FX trade overnight hasn't been our favourite (EUR/JPY shorts) and it's well worth sticking with. If US/EU trade tensions grow and if the US data are strong, EUR/JPY will struggle. Short GBP/JPY has an obvious appeal too," SocGen adds.
*Recorded in eFXplus Orders