Flash: USD/JPY a prime longed candidate for fortified USD – UBS

FXstreet.com (New York) - The most effective way to play a mounting USD is the long the USDJPY, suggests Research Analyst Gareth Berry at UBS.

Key quotes

“The rising US yields story is supportive, especially with JGB yields safely under the spell of the Bank of Japan's QQE program. Crucially too, the USD/JPY resumed its upward march overnight, taking Japanese stocks higher with it for a change.”

“This causality reversal puts USD/JPY back in charge of the JPY-equities tango, and augers well for further JPY weakness.”