Forex Flash: Importers flock to buy USD/JPY on dips – UBS (Barcelona) - According to the UBS Research Team, “Retail clients have been active sellers of yen but corporates and institutional clients have been slow to react to the slide of the currency in the last six months. As a result, importers now are buying the USD/JPY and yen crosses on any real dips – we expect such import demand for foreign exchange will continue.”

Moreover, while lifers remain conservative and seem unlikely to increase their foreign asset holdings or lower their hedge ratios quickly given the costs of hedging remain low, the start of the new financial year has resulted in asset managers putting more funds to work abroad.