Analyst: The watershed is coming, and the spread advantage will give the yen a 10% chance to appreciate

Sina Financial News analyst Aaron Rock said that for the yen, we expect the tightening of the Bank of Japan’s monetary policy to herald the arrival of a period of strength, and the appreciation of the yen against other major currencies next year will be around 8-10%. In our view, the Fed, ECB and BoE will all start cutting policy rates in June, so spreads will shift sharply in favor of the JPY. While a stronger yen may scare off some of the overseas investors who have driven the recent bull run in Japanese equities, we expect long-term Japanese government bonds to remain strongly supported by domestic investors, as the expected change in hedging costs favors the repatriation of funds from the euro sector government bonds and the like.