Analysts at SMBC Nikko Securities in Tokyo with the comments:
Says Yen weakness despite falling real US yields, SMBC says these suggest USD/JPY may fall to 105 levels. But:
- both yen and Japanese stocks offered, and likely to underperform further as cases grow
- Support for both would come as Japan rolls out of vaccines
- But the continuing states of emergency causes drops in domestic demand
Further risk stems from
- the potential for Japanese to grow tired of self-restraint due to a lack of compensation
- wariness the latest state of emergency will be extended again
