A trade call from RBC on USD/JPY (note dated from April 13):
- Recommends long USD/JPY at 120.40
- Target of 124.00
- Stop-loss at 119.00
- They cite the balance of risk has to favor yen downside given long-term capital outflows are going into foreign stocks despite leveraged positioning is now back to neutral
- Short JPY would also work if markets continue to turn risk-seeking
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USD/JPY has had a bit of a dip this morning, just exacerbated in the past 20 minutes or so by comments of Abe adviser Hamada re-crossing the Bloomberg terminal
