JPY may no longer be the top performer against the dollar - Nomura

Analysts at Nomura still believe that USD/JPY could fall in the medium term, but suggests that the yen may no longer be the top performer against the dollar.

Key Quotes

“We’ve been resolutely bullish the yen since the start of the year. We have used it as our preferred currency to express a bearish dollar view. However, while we still believe USD/JPY could fall in the medium term, we believe the yen may no longer be the top performer against the dollar.”

“In some ways everything that could move in favour of the yen has transpired: US yields have fallen, the US administration has talked down the dollar, risk appetite has faltered and Japanese investors have not meaningfully sold the yen. Such a constellation of factors is unlikely to reassemble itself in the coming months.”