USD/JPY: MORE ROOM FOR LOSSES UNLESS FRIDAY’S US DATA ARE STRONG – SOCGEN

USD/JPY has fallen back below the 148.00 level. Economists at Société Générale analyze the pair’s outlook.

Yen shorts are finally being cut back for the BoJ meeting

Japanese wage data delivered 2% YoY earnings growth for January and reports of wage demand and pay settlements all suggest a pickup. Surely everything is in place to bury YCC and NIRP on March 19? 

Yen short covering is helped by lower US yields and unless Friday’s US data are strong, there’s more room for USD/JPY to fall.