📝We Are Short USD/JPY, Target @143.0: MUFG Strategy

We want to maintain some exposure to a further weakening of the US dollar and believe long JPY may be the best way for that right now. We understand the resilience that has been evident in USD/JPY and the wide yield divergence has helped keep the yen weaker than all other G10 currencies.

Our own short term valuation model shows an increasing divergence with spot well over-valued. It implies fair-value at 143.00. The move in USD/JPY will ultimately be all about timing and on that basis we see more compelling reasons to suggest the timing for a bigger correction lower could be approaching.- MUFG Strategy