This via the folks at Société Générale, from their ‘Forex Weekly’
We are sticking with yen shorts for now.
- Stay long USD/JPY as well as long CAD/JPY and in the longer run, EUR/JPY.
- One day, the yen’s extreme undervaluation is going to come back and bite yen bears but for now, the BOJ is holding (very) firm and the correlation with relative yields is helped by Japanese real yields falling.
- There should be three to six months of decent gains in yen shorts.