Deutsche Bank remains constructive on USD/JPY but expect rising
volatility as the trend matures.
"Although Japan’s basic balance has strengthened over the summer, we
expect unhedged FDI outflows and pension buying to remain dominant supports for
the cross. Exports, manufacturing and inflation look vulnerable to the
deteriorating external backdrop, raising the odds of further monetary stimulus
by January. The upcoming IPO of a large, state-owned bank is an extra incentive
for renewing the ‘Abe put’," Deutsche Bank writes.