Societe Generale’s Kit Juckes notes that recent G10 policy moves, including a BOJ hike, have not produced dramatic FX shifts. He argues that a dovish Fed outcome would favour short USD/JPY positions. The strategy reflects expectations that relative policy dynamics and potential Fed caution could weigh on USD/JPY over the coming weeks.

Dovish Fed scenario supports Yen

"Short USD/JPY and short USD/SEK should deliver results in the event of a dovish outcome; further EUR weakness would follow on from any hawkish surprises."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)