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Talking Points:

• USDJPY broke a more than 15-year trendline, leading many to envision the next leg of a large bull trend

• A connection to risk trends via carry trade and the market's inclination towards range clouds the outlook

• Short-term, USDJPY is one of the most exposed to a correction technically and fundamentally

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Is USDJPY setting the stage for the next leg of a much larger bull trend? While the longer-term views of the chart and interest rates forecasts will eventually offer the bulls a platform, the near-term conditions tilt far more towards a correction. An indelible connection to risk appetite curbs the ambitions of the yen crosses as much as it sees equity ambitions and participation fizzle when new highs are finally reached. Furthermore, short-term performance and fundamental theme sets USDJPY apart from its yen crosses when we consider the potential for the bears to return. In today's Strategy Video, we look at how the technical, fundamental and market condition elements behind USDJPY present a strong opportunity for bears given the correct cues.

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