Comments from Bank of America / Merrill Lynch on the coming roll over onto a new Japanese fiscal year (begins April 1)
The bank is looking for a turnaround in the yen supply and demand balance:
- First quarter JPY strength has been amplified by positioning
- Short JPY position may have neutralized/flipped long
- Exporter hedging and lack of FX risk taking behind recent JPY rally
- New fiscal year likely to change this dynamic
(bolding mine)
Add this in to MS' views on what the near term will look, like, they are also expecting a bout of yen weakness: Morgan Stanley on USD/JPY - long (target and stop levels)
