Japan Flows And FX Positions

The report highlights the persistence of retail intervention bets against the JPY and a steady institutional rebalancing away from foreign equities into foreign bonds. Meanwhile, foreign capital continues to show strong interest in Japanese equities despite decelerating bond inflows.

Key Takeaways

• 1.Japanese retail investors continue to bet on intervention by holding short USD/JPY positions and long cross JPY positions.
• 2.Japanese pension funds are sustaining a rebalancing strategy by net selling foreign equities and net purchasing foreign bonds.
• 3.Foreign investment in Japanese equities remains strong, though bond inflows are decelerating.

Table of Contents

• Japan Flows & FX Positions
• Japanese Institutional Flows: Pension rebalancing from foreign equities to foreign bonds continues
• Japanese Retail Flows: Outflow continues while some bid in Japanese equities
• Foreign Inflows: Japanese asset purchases remain resilient
• Disclosures
• Important Disclosures

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