Currency investors should consider selling EUR/JPY this week, advises Credit Suisse in its weekly FX pick to clients.
Rationale: Our economists expect several pieces of weak European data this week. We expect the market will also come to realize there is a very slim likelihood of FX policy coordination at the G20 meeting, and this should have potential to keep JPY bid.
Our technical analysts are bearish EURJPY too with an eventual target of 121.94/90.
Risks: The risks of the trade are if the G20 meeting does result in some sentiment-supportive policy surprise," CS says as a rationale behind this call.
*CS runs a limit order to sell EUR/JPY at 126.40, with a stop at 127.45, and a target at 122.05.
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