Schroders Shorts JGBs, Pimco Likes Yen in BOJ Game Plan

The video discusses the impact of the YCC move on Japanese markets, highlighting investor strategies such as shorting JGBs and buying yen. It explores the yen's valuation, with UBS suggesting a fair value of 124 over the next 12 months. The role of the BOJ is crucial, as their actions could influence the yen's future. Despite typical currency strengthening with central bank tightening, the yen has shown different behavior, reflecting investor uncertainty about the BOJ's intentions.

What are some of the strategies investors are using in response to the YCC move?

• Buying Japanese real estate

• Focusing on technology stocks

• Shortening JGBs and buying yen

• Investing in European markets

According to UBS, what is the expected fair value of the yen over the next 12 months?

• 150

• 142

• 124

• 130

What is the current sentiment among economists regarding the BOJ's actions for the rest of the year?

• They predict a decrease in interest rates

• They foresee an increase in inflation

• They expect significant changes

• They anticipate no major actions

How has the yen's behavior differed from typical currency reactions to central bank policy changes?

• It has strengthened significantly

• It has remained stable

• It has weakened despite policy tightening

• It has mirrored the dollar's movements

What uncertainty is affecting the yen's current weakness?

• BOJ's unclear policy direction

• Global economic downturn

• Trade tensions with China

• Rising oil prices