Societe Generale Research maintains its bias of preferring short EUR/JPY than short EUR/USD over the coming weeks.
"As ever, and a the risk of sounding like a broken record, we'd rather be short EUR/JPY than EUR/USD. The yen has disappointed those who wanted an explosive rally in a crisis, but it's the world's strongest currency all the same. Jay Powell's central message is that the Fed will maintain super-low rates for a super-long time, and do as much QE as needed. That's the message from all the world's central bankers," SocGen notes.
"In FX, that message will go on supporting the currency of the world's biggest holder of foreign assets," SocGen adds.