USD/JPY: headed to 110.00 and below - Nomura

Analysts at Nomura noted that markets this week have been dominated by Donald Trump’s press conference yesterday.

Key Quotes:

"The dollar rallied into the event, only to depreciate as Mr Trump failed to provide clarity on his policy aims (notably trade and fiscal policy).

We entered short USD/JPY positions prior to the conference, and continue to believe this trade has scope to perform.

As we argued last week, Mr Trump’s protectionist trade policy should be fundamentally negative for the dollar, and we see USD/JPY heading towards 110 if not lower in the coming months."