FX Update: New position USD/JPY

On a regular basis, we keep our clients updated through email by publishing Market Update, Portfolio Update and FX Update. Here you can read the latest FX Update:

On Friday 17 February we opened a new position in our Managed FX portfolios.

Short USD/JPY
The Japanese yen (JPY) has fallen to a three month low against the US dollar (USD) on signs of growth in the US economy and falling demand for haven assets and currencies. According to our research partner Morgan Stanley, this weakening is only temporary and it is premature to look for a turn in the five year JPY strengthening trend. The Bank of Japan (BoJ) has begun easing, but it still has a long way to go, to catch up with the easing done by the other G10 countries. We believe that the USD/JPY cross rate will test 76.00 seen at the beginning of February.

Position taken:
Short USD/JPY 79.04
Size 20% of AUM
Stop Loss 82.05 (-3.81%)
Target 76.00 (+3.85%)

You can see our existing and closed positions in JGAM’s FX Positions 2012.

If you are interested in learning more about our managed portfolios or advisory services please do not hesitate to contact your portfolio manager.

Kind regards
JGAM