Head of FX strategy at Nomura, Yunosuke Ikeda, says Nikkei longs and yen shorts are set to benefit from the soon to be announced reforms at Japan’s Government Pension Investment Fund. Ikeda is calling for USD/JPY at 112 by the end of this year, and 118 by the end of 2015
- Reform of the GPIF is expected to be announced as a part of the Abe government’s growth strategy in June
- Also coming up major Japanese pension fund are soon to announce allocation targets (these should come in August and September)
- Ikeda says around 20 to 25 bn yen of JGBS could be sold, with theproceeds going into Japanese stocks and overseas stocks and bonds
- The shift will take place over the next 12 to 18 months
