National Australia Bank revise its projections for USD/JPY:
- end-June to 108 (from 102 previously)
- end-September 108 (101)
- end-December 110 (101)
NAB citing:
- widening 10-year U.S.-Japan sovereign bond spread in both nominal and real terms
- constraining of Japan’s economic recovery by another extension of Tokyo’s state of emergency
- Japan's recovery will lag other major economies
- is reinforcing the view that the nation’s recovery will lag behind other major economies
- vaccines roll out is risk positive, should erode some of the yen’s haven appeal
- BOJ is years away from any rise in its policy rates, and well behind other major central banks