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USD/JPY: Targets For The 3rd-Cycle On L/T Charts - Citi
In 1995 and 2011 the lows in USDJPY were put in on the back of a natural disaster in Japan (Kobe earthquake in 1995 and Fukushima disaster in 2011). This yielded a policy response from the Bank of Japan/Finance Ministry Unlike the prior 2 cycles the rally in USDJPY this time has been more QE driven (foreigners buying USDJPY). In the 1978 and 1995 cycles Japanese investors would have received good rewards in their search for yield (US 10 year yield level versus JGB yields) but would have lost that and more if the investments were hedged (Due to the large short term interest rate differential dynamic). So far in ... (full story)