Yen in demand on safe haven status - Nomura

Analysts at Nomura explained that in this week’s risk off, JPY has been demanded for its safe-haven status.

Key Quotes:

"The BOJ left policy unchanged, though we still see an easing as likely in July. Expectations for a July easing could support USD/JPY (along with verbal intervention from policy makers); however near-term trading will likely be most influenced by Brexit risk, particularly if the polls remain tight."

"While a Brexit is not our base case, it could lead to an abrupt JPY appreciation."

"The Japanese authorities may judge these movements triggered by a nonJapan, non-US event as disorderly. While JPY has been demanded with Brexit risk, we argue EUR is temporarily losing its safe-haven status ahead of the European risk event."