8 Dec 2014
JPY weakness accelerates more than expected – Nomura
FXStreet (Barcelona) - The Research Team at Nomura note that JPY weakness accelerated more than expectation as it broke the 121 level after US NFP, while indicating that 122-123 levels can be seen sooner.
Key Quotes
“We expect USD/JPY to continue to trade well into the next two important events, Japan‟s general election on 14 December and the FOMC meeting on 17 December. Before these two events, the final forecasts for the election results by major local media next week will be important for USD/JPY.”
“These forecasts are likely to point to a victory for the ruling coalition, which could sustain JPY weakness into the election on 14 December. We would not be surprised if USD/JPY were to appreciate further to 122-123 relatively soon.”
“We still see an upside risk for USD/JPY and will look to re-enter JPY short positions. We will choose the timing and level carefully to enter such positions.”
Key Quotes
“We expect USD/JPY to continue to trade well into the next two important events, Japan‟s general election on 14 December and the FOMC meeting on 17 December. Before these two events, the final forecasts for the election results by major local media next week will be important for USD/JPY.”
“These forecasts are likely to point to a victory for the ruling coalition, which could sustain JPY weakness into the election on 14 December. We would not be surprised if USD/JPY were to appreciate further to 122-123 relatively soon.”
“We still see an upside risk for USD/JPY and will look to re-enter JPY short positions. We will choose the timing and level carefully to enter such positions.”