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The Bank of Japan trimmed its purchases again of 25Y-plus JGB by 10blm JPY from 80blnJPY to 70blnJPY. Recent volatility in equity markets and traders interest in Japanese investment strengthen the Yen. In February the volatility has risen with a sell-off in equities. The risk aversion favored the JPY over most-traded currencies, especially against G10 currencies.
We believe the JPY will outperform further in the near-term. Into fiscal year-end, we forecast JPY crosses will find a minor bottom.
JPY crosses technical comments
Also read: JPY technical stories
It is important to always keep in mind the risks involved in trading with leveraged instruments.
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