Flash: Market watching NKK/JPY correlations - Societe generale

FXstreet.com (Barcelona) - Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that USD/JPY is pausing, down this morning as the Japanese equity market greeted 2014 by falling.

Key Quotes

“The market watches the correlation between NKY and JPY, but obviously the causation is that a weak currency helps exporters’ performance not the other way around.”

“USD/JPY RSIs reached very overbought levels just before Christmas, but they are tumbling quickly. On that basis, I’d like to get long again either when the markets calm down, or on any move down to USD/JPY 104.”