Flash: Time for another leg up in USD/JPY - RBS

FXstreet.com (Barcelona) - According to Greg Gibbs, FX Strategist at RBS, this is the time that the BoJ policy should produce further weakness in JPY once again, as easing policies are not expected to be removed for at least two years - may even be enhanced -, putting downside pressure on Japanese yields while other global bond markets are behaving inversely, Gibbs said.

Key Quotes

"Emerging market equities and currencies are in recovery mode, at least for the time being, supported by stronger growth prospects in the major economies and recovering indicators in China."

"With low real yields in Japan, and improving global risk appetite, the market should be looking increasingly to JPY as a funding currency. And Japanese investors should be seeing improved investment opportunities abroad."