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Oct 26 - 05:00 PM
JPY: 'The Land Of The Rising Sun' For JPY; A M-Term Buy Into 2019 - CIBC
First appeared on eFXplus on Oct 26 - 12:35 PM

CIBC Research discusses the JPY outlook and maintains a medium-term bullish bias into 2019, expecting USD/JPY to fall below 110 early next year.

"We underlined last month (see here) three key reasons why we remain constructive on the JPY outlook: Japan’s large current account surplus, its net-creditor status and the BoJ’s stealth tapering. All of these represent a land of the rising sun for the yen in terms of a medium term appreciation ahead.

The recent uptick in risk aversion could also see domestic investors stay within Japan in order to earn a return. Speculative JPY shorts have reached eight month highs, suggesting that there is scope for a short covering rally, which would lend further support to the yen," CIBC argues. 

Source:
CIBC Research/Market Commentary

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