13 May 2013
Forex Flash: USD/JPY, heading towards 105 in May/June - Nomura
FXstreet.com (Barcelona) - Price action in USD/JPY matches very closely recent calls by Nomura strategists, who argued, this is "what you would expect based on the historical seasonality in bond flows, and the acceleration in activity post golden week."
Nomura adds: "We have been arguing that a spike towards 105 in USDJPY was quite likely around the peak flows in May-June, and this scenario now seems to be playing out. During Q2, as asset allocations peak, we think overshooting towards 105 is possible."
Nomura adds: "We have been arguing that a spike towards 105 in USDJPY was quite likely around the peak flows in May-June, and this scenario now seems to be playing out. During Q2, as asset allocations peak, we think overshooting towards 105 is possible."