Societé Generale - "Sometime soon after the publication of the G7 communique on foreign exchange rates, policy-makers met resistance to the idea of effectively giving Japan carte blanche to go on weakening the yen. Markets were told that everyone was misinterpreting the communique (I certainly didn't read any concern about a weaker yen in the statement) and so the yen shorts were duly cut back. The resistance to a weaker yen is greater outside the G7 economies (but within G20) and the rally overnight in other Asian currencies and their equity markets tells us how the region feels about excessive yen weakness. with the G20 meeting in Moscow at the end of the week the next geopolitical focus, USD/JPY will continue too trade choppily but getting long closer to 90 remains our target."