4 Jul 2013
Flash: Key developments fundamentally USD/JPY bullish - Noumura
FXstreet.com (Barcelona) - Several developments are fundamentally bullish for the interest of buyers in USD/JPY, according to Currency Strategists at Nomura, who include Jens Nordvig, Yunosuke Ikeda and Yujiro Goto.
The key points mentioned by Nomura Strategists are, firstly, "real rate differentials have moved to support a move to the topside (both from the JPY side, and from the USD side)." The Team also notes that "volatility in the JGB market has decreased materially, with the 10-year yield trading within a narrow 0.8-0.9% range for several weeks, despite violent moves in global rates markets."
On the equity domain , the Strategists emphasize the performance of the Nikkei, saying "it has again started to trade with an upside bias, and volatility has moderated, especially on a relative basis." Lastly, the Strategists believe that "data from Japan has generally shown robust growth momentum, and Mr Abe's approval rating has been holding up well; both of these factors should be supportive for risk sentiment, and conducive to capital outflows from Japan."
The key points mentioned by Nomura Strategists are, firstly, "real rate differentials have moved to support a move to the topside (both from the JPY side, and from the USD side)." The Team also notes that "volatility in the JGB market has decreased materially, with the 10-year yield trading within a narrow 0.8-0.9% range for several weeks, despite violent moves in global rates markets."
On the equity domain , the Strategists emphasize the performance of the Nikkei, saying "it has again started to trade with an upside bias, and volatility has moderated, especially on a relative basis." Lastly, the Strategists believe that "data from Japan has generally shown robust growth momentum, and Mr Abe's approval rating has been holding up well; both of these factors should be supportive for risk sentiment, and conducive to capital outflows from Japan."