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Where the Yen Is Headed Next: Strategist

Friday, 30 Mar 2012 | 2:35 PM ET
Japanese Flag
Photo: Bryan Jones
Japanese Flag

Think the yen's headed for more weakness? You won't hear it from this strategist.

Other than an end-of-fiscal-year bounce, the yen has been having a rough ride lately, and the bears are prowling. J.P.Morgan, for example, thinks fair value for the yen longer term is 115 against the dollar.

Jens Nordvig, global head of G10 foreign exchange strategy at Nomura Securities, begs to differ.

"The yen has weakened significantly over the last two months, but I think a lot of that has to do with global factors," he says, like the rise in U.S. interest rates and a gradual easing of the crisis in the euro zone.

How to Trade the Weakening Yen
Sharing his trade for the Japanese Yen, with Jens Nordvig, Normura, global head of G10 FX.

"We are reluctant to extrapolate - and in fact, I think we could see a reversal of some of the yen move we've seen."

So Nordvig wants to buy the yen against the dollar, he told CNBC's Scott Wapner. He would enter the trade around 82.50 with a stop at 84.00. He wants to set a target of 80.00, and "lets' see what happens down there."

You can watch the discussion on this video.

Tune In: CNBC's "Money in Motion Currency Trading" airs on Fridays at 5:30pm and repeats on Saturdays at 7pm.

Learn more: The essential vocabulary for currency trading is on Key Terms Dictionary. Top currency strategies are broken down for you in Currency Class.

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