Nomura expects the yen to fall 3% against the euro and is re-establishing long positions in euros.

Nomura International expects that by the end of September, the yen will depreciate by more than 3% against the euro. The firm has again built up positions, betting that the yen will give back all the gains made from intervention and reach a historical low against the euro. Forex strategist Hiroyuki Miyairi has restarted a tactical bullish position on EUR/JPY at the price level of 183.90, which is close to the current market level, with a target of 190 by the end of September and a stop-loss set at 181. Two weeks ago, the US and Japan jointly intervened in the market to buy yen, pushing the euro against the yen down from about 187 to 180; currently, this currency pair has recovered 50% of the previous drop. Hiroyuki Miyairi's prediction suggests that the euro will break through the high of 187.95 set in April.