The turn lower in USD/JPY and EUR/JPY is closer now – SocGen

Kit Juckes, Global FX Strategist at Société Générale, finds the Yen’s valuation interesting. 

EUR/USD is going to crawl higher at best in the near term

If US yields have peaked and Japan’s economy is recovering, the Yen is much too cheap, even if it takes until 2024 for the BoJ to make any further policy changes. 

The Yen will doubtless frustrate for a while longer, but the turn lower in USD/JPY and EUR/JPY is closer now. EUR/USD on the other hand, is going to crawl higher at best in the near term, and the same can be said of GBP/USD.