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4 May 2015
USD/JPY heading higher? – SG
FXStreet (Barcelona) - Kit Juckes of Societe Generale, argues that the FX positioning data suggests EUR/JPY and USD/JPY might have scope for the upside.
Key Quotes
“Positioning data show a combined US dollar position on the IMM finally turning lower. I'm guessing the last few days saw that trend continue but you'd be hard pushed to conclude there's room yet to mount a serious rebound.”
“The dollar bulls are getting squeezed but are not in a minority yet, by any stretch of the imagination. Yen shorts however, are being reduced apace, and the contrast with EUR shorts is striking. This argues for a long EUR/JPY trade (or long SEK/JPY?) but it also opens the way for USD/JPY to move higher.”
Key Quotes
“Positioning data show a combined US dollar position on the IMM finally turning lower. I'm guessing the last few days saw that trend continue but you'd be hard pushed to conclude there's room yet to mount a serious rebound.”
“The dollar bulls are getting squeezed but are not in a minority yet, by any stretch of the imagination. Yen shorts however, are being reduced apace, and the contrast with EUR shorts is striking. This argues for a long EUR/JPY trade (or long SEK/JPY?) but it also opens the way for USD/JPY to move higher.”