Go short USD/JPY amid potential risk-off ahead of G20 - BAML

The Research Team at Bank of America Merrill Lynch (BAML) recommends going long on the Yen against the Euro and the US dollar on potential risk-aversion ahead of G20 Summit later this month.

Key Quotes:

“Concerns of negatives to increase in markets ahead of the G20 (June 28/9).

Has the potential to see risk off sentiment.

Recommend selling USD/JPY.

Markets are complacent.

"We have a relatively optimistic view for the end game, but are concerned that things can get worse before getting better"

Risk is a comprehensive agreement at the G-20, but even if so, re-pricing of the Fed to limit risk-on market move, which would limit the downside for yen.”