A recent yen rally prompted a sell-off in Tokyo on Monday, but market participants see limited near-term earnings risk. A Bank of Japan survey of more than 800 firms found a weighted average USD/JPY assumption of 151.49; spot USD/JPY remains roughly 5 yen away from that level, providing a buffer against further yen appreciation. Daiwa Securities chief strategist Yugo Tsuboi said earnings downgrade risk should be small unless USD/JPY moves close to the 150 area, and that current yen strength alon

A recent yen rally prompted a sell-off in Tokyo on Monday, but market participants see limited near-term earnings risk. A Bank of Japan survey of more than 800 firms found a weighted average USD/JPY assumption of 151.49; spot USD/JPY remains roughly 5 yen away from that level, providing a buffer against further yen appreciation. Daiwa Securities chief strategist Yugo Tsuboi said earnings downgrade risk should be small unless USD/JPY moves close to the 150 area, and that current yen strength alone does not appear sufficient to impair corporate profits.