OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/JPY Aggressive profit-taking in toshin market – Nomura

FXStreet (Barcelona) - Research Analysts at Nomura note Retail investors selling foreign securities aggressively via toshins last week.

Key Quotes

“They sold JPY195bn ($1.7bn) of foreign securities via toshins, the biggest weekly net selling since end-December 2013, when they took profits aggressively before the hike in the capital gains tax and the introduction of the NISA. Their selling of foreign securities was especially strong on 7 November, recording the biggest daily selling ever (- JPY177bn or -$1.5bn). Retail investors sold domestic assets aggressively via toshins last week, to the tune of JPY464bn ($4.0bn), the biggest weekly net selling.”

“Nonetheless, the rate of JPY depreciation after the BOJ easing and the GPIF announcement are likely to have exceeded their expectations, and retail investors are likely to take profits aggressively.”

“These suggest retail investors have not been participating in the latest USD/JPY rally, both in toshin and margin trading markets, while they are more likely to have reduced their JPY selling exposure.”

“In the short term, their investment momentum may remain weak, because of the magnitude of the recent JPY weakness. However, risk appetite among retail investors has been gradually improving, and we expect their foreign investment to recover relatively soon.”

Recent market expectations strengthen JPY selling - BTMU

Lee Hardman, Currency Analyst at Bank of Tokyo-Mitsubishi UFJ views USD/JPY rally points to snap election & sales tax delay being already priced.
Read more Previous

EUR/USD testing wedge lows ahead of EZ risk events

EUR/USD has been buffeted in an wedge pattern since Nov 5th amid absence of catalysts to break either side, although the maturity of the technical formation and EZ GDP/US Retail Sales should act as catalyst to set the next short term direction for the pair, which remains in a firm downtrend.
Read more Next
Start livechat