USD/JPY Set To Rise Further & EUR/USD Set To Reach Attractive Buy Levels - SocGen

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Societe Generale Cross Asset Strategy Research notes that the FX market is still following bonds, rather than the other way around.
"The moves over the last three weeks are big, but can easily be dismissed as a reaction to the excessive gloom of late August.
Since EUR/USD has fallen to levels not seen since mid-August, but that's not a huge correction given that relative (real) yields are back to where they were in mid-May (when EUR/USD was under 1.11)," SocGen adds/ 
"On that take, the rise in US yields will slow, USD/JPY can rise further, and we'll soon be at levels where EMFX carry trades and long EUR/USD are attractive," SocGen argues.