Investor expectations of a Yen decline pick up speed - Barclays

Analysts at Barclay's have noted that Japanese bond investors have increased their expectations of a Yen decline.

The USD/JPY outlook diffusion index, an indicator that measures the ratio of appreciation vs depreciation expectations, has fallen from -15.0 to -20.0, meaning more Japanese investors are bracing for a Yen depreciation looking forward, and more traders are beginning to lean into the depreciation camp over time.

Within surveys, expectations of a flat Yen outlook has dropped from 35% to 20%, while projections for a decline in the JPY have also risen to 50%, from a previous reading of 40%.