Societe Generale - "The short JPY, CHF long EUR trade should lead to some consolidation ahead of the BOJ's meeting next week. EUR/JPY remains far from a break below the support of its upward trending channel. This presumably means that gamma will start to settle down after some panic buying in JPY and CHF crosses. EUR/JPY 1 week gamma once at 10 is now almost at 18. The equivalent EUR/CHF gamma moved from 2 to 8.
(...) We are now in a wait and see mode looking to buy USD/JPY on dips, while expectations of Fed easing give EUR/USD support with the odds of a steady grind to 1.35. EUR/CHF is still the easier trade, EUR weakness is acting as a cross wind, but the temptation to take the next layer of barriers between 1.24-1.25 is likely to prove too strong to resist for long. USDCAD continues to do little."