Trade USD/JPY Summer Relief – SocGen
From Societe General:
USD/JPY likely to bounce before next risk-off move. Summer could be quieter with delayed risks.
Financial markets experienced severe dislocations around the Brexit vote. The pulse of the price action is gradually normalising as the effects of the shockwave gradually dissipate. In our view, risk aversion is likely to step back further in the coming weeks, leaving investors time to digest the ‘leave’ vote. With a lack of new imminent risks and a new leader of the Conservative Party not in place until 9 September, near-term relief is likely. The possibility of the activation of Article 50 by the UK is potentially the next major source of risk aversion, but it should not be on the table in the coming weeks
