"USD/JPY Outlook: BOJ Policy Shifts and Inflation Data Analysis"

Nomura anticipates potential policy shifts by the Bank of Japan (BOJ) and verbal interventions from the Ministry of Finance to curb JPY depreciation, leading to a bearish outlook on USD/JPY. Despite a bullish trend for USD/JPY, bolstered by strong US economic data, Nomura expects limited upside due to anticipated Fed rate cuts and a slowdown in Japanese retail investors' foreign equity purchases. The combination of these factors suggests a risk-reward balance skewed towards short positions in USD/JPY.