1. Hello Guest Do you know binary.com offers exclusive $20 No Deposit Bonus for FX Binary Point visitors? Click here to sign up

USDJPY upside a key way to play USD strength - BNPP

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 6, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Joined:
    Oct 7, 2015
    Messages:
    27,524
    Likes Received:
    0
    FXStreet (Bali) - BNP Paribas continues to endorse its long call on USD/JPY, noting that the current BoJ stance, without further easing, already satisfies their case for a steadily rising profile in USDJPY towards their end-15 and end-16 forecasts of 124 and 134 respectively.

    Key Quotes

    "Domestic Japanese investors bought net JPY 883bn of foreign bonds and net JPY 173bn of foreign stocks during the week ending 30 October."

    "This is very consistent with BoJ policy - which anchors nominal yields and boosts inflation expectations - that depresses JPY real yields and encourages Japanese investors to search for yield abroad."

    "Going forward we expect these outflows to continue and drive gradual but sustained JPY weakness."

    "Key point here is that existing BoJ policy is already consistent with a steadily rising profile in USDJPY - the BoJ do not need to ease further for our end-15 and end-16 forecasts of 124 and 134 respectively to be hit."
    For more information, read our latest forex news.
     

Share This Page