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Forex Flash: Adding long USD/JPY to our Asia FX portfolio - Nomura

FXstreet.com (Barcelona) - Nomura strategists Craig Chan and Wee Choon Teo have decided to add a long USD/JPY position to their Asia FX portfolio.

They note that the positive surprise from the BoJ announcement yesterday exceeded elevated market expectations and markets reacted forcefully. They comment that their G10 FX Strategy team expects JPY to weaken further against major currencies in the medium term, as domestic asset managers start to shift in the new fiscal year, and on the back of unprecedented policy aggressiveness by the BoJ. They feel that given the much lower level of nominal JGB yields, and the gradual pick up in inflation expectations, it is natural to assume a push into other asset classes by institutional managers. They write, “The sharp JPY depreciation has hit our short S$NEER recommendation given the
relative SGD appreciation. As such, we recommend adding a long USD/JPY position to our Asia FX portfolio to neutralize the effect of further JPY weakness on the S$NEER basket.”

Forex Flash: BOJ swings for the fence - OCBC Bank

Emmanuel Ng of OCBC Bank notes that with the BOJ radically outperforming prior market expectations of the scale and magnitude of its additional monetary accommodation, JPY slumped almost -3.5% against the USD on Thursday with the damage wrought on the JPY from the crosses considerably higher.
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Forex Flash: Majors led by USD strength - UBS

UBS strategists Gareth Berry and Geoffrey Yu note have taken a look at today´s majors from a technical perspective and see USD strength still leading sentiment.
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