Japan’s state of emergency has been expanded since last week to cover nine prefectures, including Hokkaido, Hiroshima, and Okayama. Japan’s government is setting up large-scale vaccination facilities and bearing down on its vaccination program. Dollar/Yen, Yen rate, and the Nikkei have only shown a limited reaction, but the global post-COVID-19 recovery trend appears to be spreading. This suggests limited downside for USDJPY, Yen rate, and the Nikkei.
In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido dissects securities investing flows over Golden Week and discusses the March Balance of Payment and April International Transactions in Securities data. He also shares his views for Dollar/Yen, Yen basis, and Yen rate.
Disclaimer: www.mufgresearch.com (PDF)