Where the Yen Is Headed Next: Strategist

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.

"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.

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