USD/JPY testing upper boundaries - Societe Generale

FXStreet (Guatemala) - Kit Juckes, chief analyst at Societe Generale noted that after the hawkish bias to FOMC minutes, the dovish camp gets its chance to sound off at Jackson Hole and focuses on the Yen.

Key quotes:

“USD/JPY is on the verge of testing the upper bound of its half-year range, an attractive entry level to tactically trade a consolidation. Implied vol remains directional and realised vol is low, so we favour short vol trades on the downside”.

“As such, we recommend buying a USD/JPY 1M RKO put strike 103.40 with a KO barrier at 100.80, the lower bound of the range”.