Societe Generale Research flags the 110.70 level to the downside in USD/JPY, and the 1.15-1.530 zone to the upside in EUR/USD.
"EUR/USD remains a bit of a sideshow, but technically, a break of 1.1445 should signals a test of the 1.15-1.1530 area that could be the door to a more meaningful rally...," SocGen notes.
"The latest market moves have seen USD/JPY re-couple with US real yields, after a dramatic de-coupling in Q1. The yen is the top currency in 20918 so far, even if it's done less on market turmoil than many had expected. We like long yen trades through the end of the year at least. USD/JPY 110.70 is the next key target," SocGen adds.