Pretty swift correction in USD/JPY - SocGen

Kit Juckes, Research Analyst at Societe Generale, suggests that he thought (still think) there are more Yen longs than shorts out there, but shorts were squeezed by doubts about the extent of upcoming fiscal easing, and pre BOJ meeting nerves.

Key Quotes

“It’s been a pretty swift correction in USD/JPY, which has spent two weeks crawling up from 100 to 107.5. As soon as relative real yields stopped dragging it higher, it dropped back to earth. 103.50 need to hold to keep the bounce looking intact but we still think that the BOJ will deliver easing and this time, it should affect the market.”