Safe-haven currencies are likely to strengthen, led by the Japanese yen because "U.S. growth fears decisively challenge high asset valuations," says Societe Generale. The best way to take advantage of this upcoming trend is to sell EUR/JPY, it says and advises going short at 121 for a target of 115, with a stop loss at 123.50. Moreover, "growth expectations remain the core forex driver, and Japan's 1Q GDP was a positive surprise. A tighter spread between eurozone and Japanese GDP forecasts should directly anchor EUR/JPY." EUR/JPY is last up by 0.4% at 121.40.
Forex and stock traders are looking for the consistently wrong investor, trader and take the opposite position. This will obviously lead to winning trades for them. All traders have read trading books that point out that increasing volume is good for the continuation of the trend. Many new stock traders will try and fight the trend.
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