Nomura remains bullish on USD/JPY

USD/JPY has been trading in a narrow range around 120 so far in 2015, notes Nomura

"After appreciating strongly in 2013 and 2014, the pace of USD/JPY appreciation slowed as we expected. However, we still do not think USD/JPY has peaked. As the Fed is finally about to embark on its tightening cycle, we expect USD/JPY to resume appreciating toward 130 in 2016," Nomura projects.

"Given monetary policy divergence and expected strong JPY selling by Japanese investors and businesses, we expect USD/JPY to keep trending higher

We are currently flat in JPY positions, but into 2016 we recommend keeping a USD/JPY long bias," Nomura advises.

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