JPY: Short JPY-crosses better risk hedge than short USD/JPY (Barclays)

Analysis originally appeared on eFXnews:

Barclays Research discusses the JPY outlook and prefers downside in JPY crosses than in USD/JPY to express a hedge for risk-off moves in the near-term.

"Shorting XXXJPY rather than USD/JPY will likely remain a more effective hedge against general risk-off moves for the time being, but a diversification from the cumulative risk in USD should gradually exert downside pressure on the USD, weakening its safe-haven status, and re-strengthen the correlation between USD/JPY and risk assets," Barclays argues.