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Forex Flash: USD/JPY unlikely to go lower on Japanese foreign investment - Nomura

Nomura FX strategists do not expect acceleration in foreign investment out of Japanese equities to lead to any significant JPY appreciation, adding that "higher Japanese equity prices encourage domestic investors to take more FX risks, which will likely offset the JPY-buying impact associated with foreign buying of Japanese equities."

Nomura adds: "In fact, even though foreign investors purchased JPY12.6trn of Japanese equities in 2005 and JPY8.1trn of Japanese equities in 2006, JPY weakened in both years. We do not think the possible further acceleration of foreign investment in Japanese equities will send USD/JPY lower..."

Forex: AUD/NZD higher, stalls below 1.2700/200 day SMA

AUD/NZD is last at 1.2637, off recent fresh 2-month highs at 1.2684, printed yesterday on the back of a combination of a RBNZ dovish monetary policy statement, and an incredibly much better than expected Australian jobs report (7 times higher than the median consensus and 3 times than the most optimistic one). The cross is higher by +1.5% for the week so far, with Aussie the second strongest currency among majors for last 2 trading days, only below Pound.
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Session Recap: Japan's Diet approves Boj new leadership; Yen unmoved

The Asian session of Friday failed to inspire traders, despite there had been growing expectations over possible Yen volatility on the outcome of the new BoJ governorship parliamentary voting.
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