BOJ’s Governor Kuroda's second term remains JPY-negative - Nomura

Analysts at Nomura explained that the BOJ’s Governor Kuroda is about to start his second term. 

Key Quotes:

"Japan’s economy and the financial market have improved clearly during his first term, but not enough for inflation to reach the BOJ’s target."

"Inflation expectations are higher, but we think the BOJ still needs significant overheating in the economy to achieve its target."

"As the new BOJ leadership is committed to the 2% target, we believe the Bank needs to keep the accommodative policy for a longer period, which remains JPY-negative."

"JPY long positions to price BOJ normalisation appear premature.The ECB could find itself facing a similar situation to the BOJ; however, the environment for the ECB is still arguably better than for the BOJ."