Japan: March seasonality is JPY negative – Nomura

According to analysts at Nomura, market interest in Japanese behaviour around fiscal year-end is rising.

Key Quotes

“We estimate corporate repatriation to by 11% more than a year ago and while over JPY1trn of repatriated funds is not insignificant, corporates can still sell foreign currencies before March. We also note there has been no JPY appreciation seasonality in March. Thus, we do not expect Japanese repatriation to be a major driver of yen currency crosses. In the medium term, we judge Japanese demand for foreign direct investment to be an important driver, possibly offsetting a large part of Japan’s current account surplus.”