Societe Generale Research discusses USD/JPY outlook in light of its correlation with 10-years yields. SocGen maintains a structural bullish bias on JPY but likes to express this view via short EUR/JPY.
First appeared on eFXplus on Nov 14 - 11:15 AM
"If believed that the USD/JPY correlation in the chart was set in stone, that would be enough to get USD/JPY down to around 104, which is higher than our year-ahead forecast, but still a good enough reason to stick with long yen trades.
Japanese GDP growth slowed to 0.2% q/q saar, though that's partially offset by an upward revision to Q2 from 1.3% to 1.8%," SocGen notes.
Société Générale Research/Market Commentary