Yen Contrarian JPMorgan Joins Consensus Victorious: Currencies
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JPMorgan Chase & Co., whose contrarian call late last year that the yen would rally in the first half of 2014 has proved prescient, is sticking with its forecast for a second-half rout.
Tohru Sasaki, the company’s Tokyo-based head of Japan rates and currency research, said he senses Prime Minister Shinzo Abe’s structural reforms, which include corporate tax cuts, will bear fruit. That’s the last of the so-called three arrows of Abe’s road map for breaking the economy free from persistent deflation and slow growth. The first two are fiscal stimulus and record monetary easing.