Japanese flow data show a steady acceleration in buying of foreign bonds and equities by Japanese investors, which has not overtaken foreign buying of Japanese assets, notes SocGen.
"This is a source of comfort for yen bears, but the overnight move in USD/JPY has broken the recent range and exposed a clear risk of a flush out of yen shorts. USD/JPY 117 is a potential target," SocGen projects.
For the EUR, SocGen notes the recent improvement in Eurozone data.
"A straw in the wind, a swallow signalling economic summer or just a sign that things aren’t getting any worse?