Bank of America Global Research flags a quant signal for EUR/JPY downside.

"EURJPY downside screens as the most attractive expression of further JPY strength. Our signals are most clearly bearish on the pair, while the combination of a bearish ADX trend and a downside Bollinger Band breakout suggests strong negative momentum. With carry again screening as the best performing factor, EURJPY also screens favourably given its low carry cost," BofA notes.

"The fundamental backdrop is also supportive. If Japanese public pension funds rebalance towards domestic assets, EUR may be most exposed given the size of the implied flows relative to daily FX turnover... Finally, the trade largely avoids heightened near-term USD event risk ahead of the September FOMC meeting," BofA adds.