Societe Generale Cross Asset Strategy Research argues that it’s too early to become a yen bull.
"In the near term, a re-test of USD/JPY 115 seems more likely than a decisive break below 108, the bottom of the current (shrinking) range.
That said, 120 looks miles away, and indeed, as the Japanese economy continues to emit signs of life and the dollar remains starved of helpful news, 115 may be about as good as it gets for a while.
Still, with policy easy everywhere, and the North Korean threat notwithstanding, our bias is to be bearish the yen against the AUD, CAD and EUR on a 3- to 12-month view," SocGen argues.
Source: Societe Generale Cross Asset ResearchOriginal Article
