29 Mar 2016
Long EURJPY starting to perform – BNPP
Research Team at BNP Paribas, suggests that the long EURJPY trade has been performing strongly over the past week as the yen appears to be finally correcting from overvalued levels.
Key Quotes
“Last week’s MoF data showed strong appetite for foreign securities, with Japanese investors purchasing some JPY 2.3 trn in foreign dent on the week ended March 18.
Faltering risk environment and strengthening JPY do not appear to have dented Japanese appetite for foreign securities, which could be a warning signal for the speculative JPY longs which are running at the highest level since 2011 according to our positioning indicator. Elsewhere, we remain short EURSEK ahead of Swedish February retail sales data on Tuesday.”
Key Quotes
“Last week’s MoF data showed strong appetite for foreign securities, with Japanese investors purchasing some JPY 2.3 trn in foreign dent on the week ended March 18.
Faltering risk environment and strengthening JPY do not appear to have dented Japanese appetite for foreign securities, which could be a warning signal for the speculative JPY longs which are running at the highest level since 2011 according to our positioning indicator. Elsewhere, we remain short EURSEK ahead of Swedish February retail sales data on Tuesday.”