Large Japanese life insurance company out with their 2017/18 plans 20 April
- will shift some funds to euro from dollar within fx-hedged foreign bonds
- will reduce holdings of fx-hedged foreign bonds by around JPY 50bln
- will maintain holdings of Japanese stocks
- increase holdings of corp bonds both in Japan and abroad in 2017/18
- expects USDJPY to rise between 111-121 by March 2018
Mitsui citing ccy hedging costs for the US dollar expected to rise as reason for shift into euro bonds. News is euro supportive especially if view shared by other Japanese insurers/funds.
USDJPY pushing up to 108.90 with EURJPY testing 117.00 offers/res but EURUSD hangs at 1.0738