EUR/JPY: A Deja Vu For Japan’s Economy & A Big Rally For EUR/JPY Next Year – Nomura

Nomura FX Strategy Research discusses JPY outlook, and notes that the recent developments in the Japanese economy and financial market in 2017 look similar to 2005, which makes the government and BoJ more cautious about a premature exit next year.

"We see a risk of more prolonged accommodative policy unless positive inflation surprises materialise. While the ECB and BoE are joining the normalisation camp, we expect the BOJ to lag significantly. The monetary policy divergence should keep widening into 2018, weakening JPY against major currencies. We are especially bullish on EUR/JPY into next year.

The monetary policy divergence should keep widening into 2018, weakening JPY against major currencies. We are especially bullish on EUR/JPY into next year," Nomura adds.

Nomura targets EUR/JPY towards the 153-154 through 2018.

Source: Nomura Securities ResearchOriginal Article