EUR/USD: Where To Target S/T Corrections; USD/JPY: Where To Target S/T Rallies - SocGen

Societe Generale Cross Asset Strategy Research notes that there's a general sense in the response to the German vote that it could be good for German equities, but that doesn't alter the FX conclusion.

"It's now or never for a euro-correction... The euro has done better than shifts in relative interest rates, short or long-term, nominal or real, can justify. EUR/USD 1.17 is a natural chart target and may well be tested in the weeks ahead," SocGen argues.

On the JPY front, SocGen notes that the Japanese came out with opinion polls suggesting Abe can win an election comfortably, which suggests more Abenomics, more Kuroda, more status quo.

"It's now or never for a move to USD/JPY 113 and on towards 115," SocGen adds.

Source: Societe Generale Cross Asset Research