19 Jul 2013
Flash: Further JPY depreciation expected beyond Sunday election - Nomura
FXstreet.com (Barcelona) - On 18 July, Nomura conducted a global client survey to get broad views on the Japanese Yen,
positioning, and related issues ahead of the Upper House election on Sunday. The key results are:
1) A majority of investors hold USDJPY long positions, targeting 100-105 for end-2013 and 105-110 for end-2014, while targets were lowered from two months ago.
2) Investors view the possibility of the LDP gaining a majority (upside risk) is higher than the possibility of LDP/New Komeito failing to gain a majority (downside risk).
3) Growth strategy and economic data are regarded as more important triggers to unwind their USDJPY long positions than the Upper House election
positioning, and related issues ahead of the Upper House election on Sunday. The key results are:
1) A majority of investors hold USDJPY long positions, targeting 100-105 for end-2013 and 105-110 for end-2014, while targets were lowered from two months ago.
2) Investors view the possibility of the LDP gaining a majority (upside risk) is higher than the possibility of LDP/New Komeito failing to gain a majority (downside risk).
3) Growth strategy and economic data are regarded as more important triggers to unwind their USDJPY long positions than the Upper House election