Flash: Short term USD/JPY long offers poor risk-reward - Societe Generale

FXStreet (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale comments that he is surprised the yen isn’t stronger this morning, as the Nikkei slides again.

Key Quotes

“The NKY/JPY correlation is driven by the currency, not by the equity market, but even so yen shorts could be squeezed out if the equity market sell-off goes much further.”

“Short-term, USD/JPY longs are poor risk-reward while EUR/JPY in particular is showing signs of breaking lower.”