Forex Flash: USD/JPY’s range yesterday eclipsed that for the rest of February - Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that USD/JPY’s range yesterday eclipsed that for the rest of February.

He feels that this is testament to a crowded trade and a narrow exit. He writes, “Compared to relative interest rates, USD/JPY is still far too high, but domestic policies and economics suggest we will end the year much higher. Buy USD/JPY with a stop just below 91. A break below yesterday’s low (90.90) would be ugly.”