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4 Mar 2014
Flash: Japanese firms anticipate USD/JPY rally resumption - Nomura
FXStreet (Bali) - According to Yujiro Goto, FX Strategist at Nomura, based on the latest survey available, Japanese firms expect a further rise in USDJPY to 105.7 in the next 12 months.
Key Quotes
"While USDJPY rose much more than Japanese firms expected a year ago (88.4), they still expect JPY weakness to continue for the time being."
"Still strong expectations for further JPY weakness are likely to influence exporters and importers trading behaviour going forward, and we judge importers' USD-buying demand should limit the downside risk to USDJPY."
"The profitable USDJPY rate is 92.2, suggesting the current level of USDJPY is supportive for Japanese manufacturers' profits."
Key Quotes
"While USDJPY rose much more than Japanese firms expected a year ago (88.4), they still expect JPY weakness to continue for the time being."
"Still strong expectations for further JPY weakness are likely to influence exporters and importers trading behaviour going forward, and we judge importers' USD-buying demand should limit the downside risk to USDJPY."
"The profitable USDJPY rate is 92.2, suggesting the current level of USDJPY is supportive for Japanese manufacturers' profits."