EUR/JPY getting some attention
Earlier, I noted comments from Credit Agricole with a bullish note on EUR/JPY. Now, SocGen has a similar take as they warn that yen bears could reemerge.
"The market is long euro and bullish, and EUR/USD is meandering in a 1.11-1.13 range. It's quite hard to see that range breaking for now, but if/when we do, we may get a spike. It's probably EUR/JPY that can trigger a move in EUR/USD as yen bears reemerge," SocGen says.
"USD positioning is the mirror-image of EUR positioning unsurprisingly. The last time positioning was this negative it coincided with 2016 the low in DXY," SocGen says.
