USD/JPY: A Buy Closer To 105; GBP/USD: Further Short Squeeze - SocGen

Societe Generale FX Strategy Research notes that USD/JPY has been following real yields, and does look increasingly like a buy closer to 105.

"We just can't see the justification for US real yields to fall all that much further, and stability around here may be all that is needed to get USD/JPY trending back up within the current trading range," SocGen argues. 

Meanwhile, SocGen notes that GBP buying ran into a wall of corporate selling on Wednesday, but the risk remains of a further short squeeze in cable. 

USD/JPY is trading circa 109.07 and GBP/USD is trading circa 1.2801 as of writing. 

Source: Societe Generale Cross Asset Research