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20 Feb 2013
Forex Flash: Prudently buying USD/JPY on the 90 handle - Societe Generale
The Japanese trade balance will be the main risk event in Asia today, with particular focus in detals about energy, says Sebastien Galy, currency strategist at Societe Generale.
Mr. Galy notes: "Japan is heavily dependent on these now more expensive imports and it might be too early for the recovery in foreign demand and a weaker JPY to have helped enough. Oddly enough Japanese convenience store sales might be an interesting guide to any shift in confidence amongst Japanese consumer."
"All in all, the market will use any bearish excuse to sell the JPY as confirmed by our internal flow. While gamma is generally crushed, some cross Yen gamma may make sense eventually with the decision for the BoJ governor coming up and extremely heavy positioning. We prudently buy USD/JPY on the 90 handle" the strategist adds.
Mr. Galy notes: "Japan is heavily dependent on these now more expensive imports and it might be too early for the recovery in foreign demand and a weaker JPY to have helped enough. Oddly enough Japanese convenience store sales might be an interesting guide to any shift in confidence amongst Japanese consumer."
"All in all, the market will use any bearish excuse to sell the JPY as confirmed by our internal flow. While gamma is generally crushed, some cross Yen gamma may make sense eventually with the decision for the BoJ governor coming up and extremely heavy positioning. We prudently buy USD/JPY on the 90 handle" the strategist adds.