For those with access to the Financial Times, there’s an article with a number of views from different analysts. Just some background information.
- underwhelming reaction to this week’s Bank of Japan policy announcement.
- Possibility that Japan’s currency tactics spark a currency war, so forcing politicians in Japan to back down on their weak-yen demands
- We don’t think the yen will fall quite that far (100), but the near-term risks are skewed towards weakness, assuming global sentiment continues to improve and the market focus moves on to speculation about real change at the BoJ under a new governor,
- over the longer term the yen will probably fall a lot further
- Should this recent phase of improved risk appetite suddenly reverse, then the safe haven qualities of the yen may come to the fore.
