- Analytics
- News and Tools
- Market News
- The Yen’s charging – Societe Generale
The Yen’s charging – Societe Generale
The unwinding of short Japanese Yen (JPY) positions continues apace, Societe Generale FX strategist Kit Juckes notes.
A further fall in USD/JPY is unlikely to be sustainable
“In the three weeks since it peaked, it has gained 6% against the USD, 8% against the AUD, 9% against the MXN and BRL, and 11% against the NOK. Were there huge, long NOK/JPY trades on out there that I didn’t know about? Sales of Yen calls, to finance purchases of puts, was a trade that benefited from (and helped drive) a low volatility, slow rise in USD/JPY.”
“Those trades can’t survive a spike in volatility, let alone am appraisal of the trade’s future as Fed easing comes closer, the US yield curve disinverts rapidly and BoJ rate hikes come into sight. So far, the momentum of the move (at least as measured by RSIs) is similar to that in late 2022 and late 2023.”
“To that extent, a further fall in USD/JPY at the current speed is unlikely to be sustainable. A slower move lower, on the other hand, would confirm that this really is more than just a ‘clear the air’ flush of speculative positions.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
