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20 Mar 2014
Long USD/JPY, target of 103.00/104.00 - Nomura
FXStreet (Bali) - Nomura Strategists put out a note yesterday, noting they were buyers of long USDJPY spot contracts into the FOMC, with the position having worked in their favour so far. Jens Nordvig, FX Strategist at Nomura, updated clients on their position, which aims at a target of 103.00/104.00.
Key Quotes
"We are not convinced that this is the time to again get involved in broad long USD exposure, given that the data picture remains fairly mixed."
"But we think the USDJPY trade has further to run, in part due to the downward drift in the Yen TWI, which remains in place, in our view, and because financial market volatility may drop somewhat from the elevated levels we have seen since mid-January."
"It is okay to remain short the Yen, but we are looking to adopt an un-ambitious target for USDJPY of 103-104."
Key Quotes
"We are not convinced that this is the time to again get involved in broad long USD exposure, given that the data picture remains fairly mixed."
"But we think the USDJPY trade has further to run, in part due to the downward drift in the Yen TWI, which remains in place, in our view, and because financial market volatility may drop somewhat from the elevated levels we have seen since mid-January."
"It is okay to remain short the Yen, but we are looking to adopt an un-ambitious target for USDJPY of 103-104."