Upside in USD/JPY remains limited - SocGen

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 2, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Delhi) – Kit Juckes, Research Analyst at Societe Generale, suggests that the impact of a shift to negative rates in Japan is likely to have far less impact on the yen than the ECB’s move had on the Euro.

    Key Quotes

    “Because the yen’s valuation is so stretched and partly because Japanese investors have long since embraced the idea of looking for higher yields abroad. The limiting factor behind Japanese capital outflows (and hence a weaker currency) is the lack of attractive foreign destinations for their money.

    The yen remains a funding currency and upside in USD/JPY remains limited. I’m going to be pushing long yen trade ideas by the end of the week if it doesn’t oblige Mr Kuroda by weakening in the next few days.”
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