26 Jul 2013
Flash: Yen in focus - Nomura
FXstreet.com (London) - FX Strategist team at Nomura said the focus this week was largely on the Japanese Upper House election.
Key Quotes:
“As expected, the Japanese Upper House election was won by the ruling coalition”.
“As the LDP failed to gain a solo majority, USD/JPY dipped following the result”.
“Our client survey, which we conducted ahead of the election, suggested that investors are focused on the government‟s growth strategy and Japanese economic data as potential catalysts to unwind their long USD/JPY exposure, rather than the Upper House election. Hence, the dip in USD/JPY was relatively shallow”.
“On a medium-term basis, we think the coalition victory is USD/JPY positive. The ruling coalition now holds majorities in both houses, enabling it to decide economic policy more smoothly”.
“Other findings from our client survey suggest that most investors hold USD/JPY longs, targeting 100-105 for year-end 2013 and 105-110 for end-2014”.
“We expect 100-105 to be the core trading range of USD/JPY this year and we target 102 for end-2013. We expect spot to trade to 110 by end-2014”.
Key Quotes:
“As expected, the Japanese Upper House election was won by the ruling coalition”.
“As the LDP failed to gain a solo majority, USD/JPY dipped following the result”.
“Our client survey, which we conducted ahead of the election, suggested that investors are focused on the government‟s growth strategy and Japanese economic data as potential catalysts to unwind their long USD/JPY exposure, rather than the Upper House election. Hence, the dip in USD/JPY was relatively shallow”.
“On a medium-term basis, we think the coalition victory is USD/JPY positive. The ruling coalition now holds majorities in both houses, enabling it to decide economic policy more smoothly”.
“Other findings from our client survey suggest that most investors hold USD/JPY longs, targeting 100-105 for year-end 2013 and 105-110 for end-2014”.
“We expect 100-105 to be the core trading range of USD/JPY this year and we target 102 for end-2013. We expect spot to trade to 110 by end-2014”.