Societe Generale Cross Asset Strategy Research makes a case for considering selling the JPY around current levels via long USD/JPY or Long CAD/JPY.
"Yesterday's data/news saw solid headline Chinese PMIs but softer Caixin ones, and a strong Tankan in Japan that was tempered by soft prices.
Improving economy plus falling price expectations probably leaves BOJ policy unchanged, while the election result is more uncertain than it was. The most recent poll puts the LDP on 24%, 15% are for Party of Hope and 42% completely undecided.
Still, simplistic though it may be, a rising 10yr TIPS yield is enough for me to short the yen," SocGen argues.
Source: Societe Generale Cross Asset ResearchOriginal Article
