JPY: Japan is back in a mess - SocGen

Research Team at Societe Generale, notes that it’s the softness of the Japanese data which stands out.

Key Quotes

“Global growth is back close to trend (better in China’s). The unsustainability of that debt-fuelled Chinese bounce will remain a hot topic, of course. But Japan is back in the mire with falling output.

Recession, capital outflows and long speculative positions, yet still the yen rallies towards USD/JPY. I’m sidelined and while’ that’s a bit pathetic, I can’t see any alternative. USD/JPY looks like a lemming hurling itself off a cliff, and the yen bulls may end up feeling a bit like lemmings in due course.”