Flash: Retails bidding for USD/JPY above 100.00 – Nomura

FXstreet.com (Barcelona) - A team of strategists at Nomura note the indicators for continued USD/JPY bulls in the retail trading sector.

Key quotes:

“Risk appetite among Japanese retail investors has inched up in August according to Nomura’s Individual Investor Survey (August 5-6). Nomura’s I-View index, which reflects retail investors risk appetite, increased to 48.4 from 46.8 the previous month”.

“The index tends to be closely correlated with foreign securities investment via toshins. Even though toshin momentum remains weak, Japanese retail investors increased purchases of foreign securities via toshins in July for the first time in two months. The slight improvement in Nomura’s I-View index suggests that toshin momentum is likely to improve gradually”.

“Retail investors still expect the USD/JPY to rise”.

“Slightly more investors, 56.1% of respondents, expect a rise in the USDJPY, in the next three months, than the previous survey (56.0%)”.

“The reference level was 98.79, and 47.9% of respondents expect USDJPY to rise by about 5pts in three months (to about 103.79). A majority of respondents expect the USDJPY to be above 100 in three months”.