Stephen Jen: Sell-off in USD/JPY doesn’t make sense
I’m just reading some comments from Stephen Jen who was a superstar FX strategist at Morgan Stanley and now runs his own outfit at SLJ Macro Partners.
“The sell-offs in USD/JPY and the Nikkei don’t make sense. I think Kuroda will likely positively surprise the market.”… “Kuroda will prevail. This is like a boxer before a big fight, or Bruce Banner in Incredible Hulk.”
He has been bearish on the euro this year and says Cyprus may leave the eurozone in the not-too-distant future.
USD/JPY broke some important support levels earlier today but it has rebounded and is unlikely to close below them. I agree that Kuroda is likely to be aggressive and like USD/JPY longs but there is a serious risk of disappointment.