Although we believed 2016 would be a year of yen appreciation, we saw it as corrective strength. While things have gone both right and wrong, our main points are largely unchanged. We believe JPY's weakness has resumed and will manifest into 2017. We expect USD/JPY to rise to 120 – when currency diplomacy will become a serious concern. Risk reward has shifted from yen buying to yen selling. Multiple forces supported the outlook for a stronger yen this year, but the strongest argument was positioning. Potential USD/JPY buyers almost dried up, while potential sellers accumulated. Of course, whether the yen would ... (full story)