How to trade USD/JPY while equities wobble? – SG

FXStreet (Barcelona) - Kit Juckes of Societe Generale, views that with equities struggling, USD/JPY should go to the topside.

Key Quotes

“Relative rates point up, and concerns about Japanese disinflation are returning.”

“There is a slight change in correlations with the yen softer as equities struggle and for now, we expect USD/JPY to go on rising at the same time as AUD, CAD and NZD remain under pressure.”

“The correlation shift throws up some cheaper (conditional) ways to get long USD while BOC, RBNZ and RBA will all be under pressure to ease further.”