Time to buy JPY at a cheap price - advised by Société Générale. According to the bank, the intelligent way of positioning the market is through options.
"In addition to good buy-in levels, we expect JPY to record a sharp jump in the medium term." - said Olivier Korber, FX strategist at SG.
The call to buy cheap yen is combined with the company's assessment, which was reported in a separate study Thursday, that the dollar is "overestimated."
The outcome of the US interim elections that sparked a divided congress "supports the idea that the best quarter for economic growth in the current cycle will be Q3 2018, and everything is down," said Kit Juckes, Fixed Income strategist at SocGen .
JPY bulls will look for a break in the US Federal Reserve's interest rates and Bank of Japan's expectations of tightening or greater uncertainty about global risk.
Source: Bloomberg Finance L.P.
Charts: Used with permission of Bloomberg Finance L.P.
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