What is the outlook for USD/JPY?
Here is their view, courtesy of eFXdata:
Credit Suisse discusses USD/JPY outlook and likes longs via options around current levels.
“In our Q2 Outlook, we argued for an expected range of USDJPY 107.00 – 112.50 for the quarter, arguing that moves to the low end of the range should be bought given the likelihood of pro-carry outcomes paying off over time in a reflationary global environment where the US is a growth leader,” CS notes.
“For those who missed the best levels to enter in terms of spot levels below 108.00, it’s still possible to consider option ideas as alternatives at sub-optimal trade locations…This trade can benefit from any period of calm into and after the Golden Week period starting in Japan, as well as a longer period of reflection around whether the Fed can push against stronger US data, while retaining upside possibilities up to our Q2 expected range highs – levels not seen since 2018,” CS adds.
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