The BoJ will likely leave QQE unchanged at the monetary policy meeting on the 12-13th. With the majority of the market now expecting additional easing in October rather than July, we are hearing many participants express disappointment about again losing this factor for yen depreciation. However, when USDJPY rises due to a strong US economy, the BoJ should not have to implement additional QQE, so where investors believe in the US recovery, we recommend USDJPY-long as a core position.
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