A snippet summary from Nomura in Japan on the yen next year.
Nomura point out that USD/JPY is trading at its highest since March 2017 and highlight four risks to be aware of into 2022:
- (1) Historical tendency of USD/JPY weakness after the first Fed hike;
- (2) Changes in supply-demand of JPY;
- (3) US mid-term elections;
- and (4) Rising market concerns over BOJ’s hawkish shift as the end of Governor Kuroda’s term approaches
I’ll see if I can dig up more from the note.
Bank of Japan Governor Kuroda’s current term ends in April 2023