USD/JPY shorts building up – SocGen

Kit Juckes, Research Analyst at Societe Generale, notes that the last week’s CFTC data show a second week of shorts building in USD/JPY.

Key Quotes

“Not extreme by any stretch of the imagination, indeed we’re at less than half the biggest short of the last 3 years, but enough for this morning’s correction. I’d guessing that, with relative real yields now higher than at this time last year, the corrections stalls between here and USD/JPY 115.”

“CFTC data showed, on the other hand, that net shorts in GBP and EUR were still being pared back. The overall dollar position isn’t extreme, and yield differentials are providing little reason to look for any notable bounce for either yen Euro or sterling.”