Forex Flash: Yen to strengthen sharply in early 2013 - HSBC (Barcelona) - HSBC has put out a recommendation to sell the USD/JPY on the basis that "current pessimism regarding the JPY is likely to prove misplaced, and we expect the Yen to strengthen sharply in early 2013" the bank says.

HSBC adds: "JPY weakness has been driven by expectations that the new government of Prime Minister Abe will deliver a substantial easing of both fiscal and, critically for the JPY, monetary policy. We suspect the market will be disappointed in terms of timing and extent of the monetary loosening."