Nomura is outlining a bearish scenario for USD/JPY in a Friday note.

They say the pair could fall to 136 from 144.92 currently by the end of September as Japanese investors repatriate and Washington leans on Tokyo to strengthen the yen.

Another factor is a hawkish Bank of Japan and rising local yields, which could “encourage domestic investors to increase more domestic bond than overseas bond exposure.”

A separate report from MUFG targets 138.30 in USD/JPY.

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