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Forex pairs in this Article » USD/JPY
FXStreet (Córdoba) - Kit Juckes, Global Head of Currency Strategy at Societe Generale believes that JPY/Nikkei correlations could see 97.00 become a realistic target for USD/JPY.

Key Quotes

"The last time the Nikkei traded below 14000, back in September, USD/JPY was below 97, and the correlation between equities and USD/JPY is good enough to make that a potential target as old, stale yen shorts are squeezed out by the current equity and emerging market turmoil."

"Emerging market currencies and developed market equity indices have been the biggest beneficiaries of super-easy Fed policy, and after a long period where EMFX bore the brunt of the change in the tide of Fed policy, equity markets are now reacting. Are they going to play catch-down? The Sg Sentiment Indicator has been lower than this morning's reading since last June and the peak of the taper tantrum."
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