Japanese Yen: Short positions favoured on dovish Fed risk – Societe Generale

FXStreetJun 17, 2026 11:37 AM

View all comments（0）



Societe Generale’s Kit Juckes notes that recent G10 policy moves, including a BOJ hike, have not produced dramatic FX shifts. He argues that a dovish Fed outcome would favour short USD/JPY positions. The strategy reflects expectations that relative policy dynamics and potential Fed caution could weigh on USD/JPY over the coming weeks.

Dovish Fed scenario supports Yen

"Short USD/JPY and short USD/SEK should deliver results in the event of a dovish outcome; further EUR weakness would follow on from any hawkish surprises."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)

Disclaimer: The information provided on this website is for educational and informational purposes only and should not be considered financial or investment advice.

Comments (0)

Click the $ button, enter the symbol, and select to link a stock, ETF, or other ticker.

Commenting Guidelines

Recommended Articles

US Stocks Fall, Dow Drops 270 Points; SOX Bucks Trend to Gain Over 3% Led by Memory, Optical Communication Stocks; SanDisk Rises Nearly 12%, Tesla Drops Almost 6%

Driven by stronger-than-expected U.S. August nonfarm payrolls data, market expectations grew that the Federal Reserve might raise interest rates at its next policy meeting, sending major U.S. stock indices lower. Semiconductor stocks bucked the trend to move higher, with memory and optical communications stocks leading the gains. At the close, the Dow Jones Industrial Average fell 0.51% to 53,414.25; the Nasdaq Composite Index slipped 0.29% to 26,506.99; and the S&P 500 Index lost 0.38% to 7,718.60.

Micron Plans to Double Monthly HBM Capacity to 100,000 Wafers to Catch Up With Samsung and SK Hynix

According to Yonhap News Agency on September 4, citing industry insiders, Micron (MU) plans to boost its monthly High Bandwidth Memory (HBM) capacity to approximately 100,000 wafers by the end of 2026, nearly doubling from last year's level. If the target is achieved as scheduled, the capacity gap between Micron and Samsung Electronics as well as SK Hynix could narrow to roughly half of its current size.

Semiconductor Stocks Buck Trend as Micron Rises Over 4%; Trump Demands Big Fed Rate Cut

On September 4 Eastern Time, US August non-farm payrolls significantly exceeded expectations, fueling expectations of a Federal Reserve rate hike. US Treasury yields subsequently moved higher, with the 2-year Treasury yield touching its highest level since January 2025. Markets expect the Fed could raise rates within a few weeks; according to the CME FedWatch Tool, Federal Funds futures traders currently price in a 58% probability of a rate hike. Although this stronger-than-expected employment data was expected to weigh on high-valuation growth stocks, the US semiconductor sector rallied sharply in early trading today.

【US Pre-Market】Nonfarm Payrolls Due Tonight as Gold Nears $4,500, Bitcoin Tops $81,000, Lululemon Plunges 19%

TradingKey - On Friday (September 4) Eastern Time, futures on the three major US stock indices were mixed in premarket trading. Dovish signals from Federal Reserve officials prompted the market to reassess the likelihood of a September rate hike, while investors remained cautious ahead of the upcoming release of the crucial US non-farm payrolls report.

Three Major Index Futures Mixed Pre-Market Ahead of Non-Farm Payrolls; Nvidia, Tesla, Oracle, Lululemon in Focus

TradingKey - In U.S. pre-market trading on September 4, the three major stock index futures diverged. As of press time, Dow Jones futures fell 0.09%, S&P 500 futures rose 0.09%, and Nasdaq 100 futures gained 0.53%.

Featured Tools