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Goldman Sachs Research likes selling EUR/JPY on rallies.
"We continue to see increased downside asymmetry in USD/JPY that should make being short a more attractive and ultimately successful portfolio hedge than it has been in many years. More tactically, though, there are few obvious catalysts for renewed JPY strength without signs of willingness by the BoJ to deliver consecutive hikes or relief on US yields. But we still recommend having long JPY exposure in some form, and our preference has been versus EUR," GS notes.
"EUR funding reduces the carry cost and should still work amidst any potential hawkish Fed repricing, further upside in energy prices, or intensification of European fiscal fears—the key shorter-term risks around our more benign baseline view—and we recommend taking any rebound in EUR/JPY as an opportunity to add downside at slightly better levels," GS adds.