Nomura: Federal Reserve Chairman Powell's dovish speech may increase the downside potential of the USD/JPY.

The Nomura Global Markets Research team stated in a research report that Federal Reserve Chairman Powell's dovish speech last Friday may bring more downside space for the US dollar against the Japanese yen. The team said that Powell's comments increased the likelihood of a rate cut at the Fed's meeting in September, and added that the US dollar may continue to weaken in the short term. Nomura stated, "We are more confident in our shorting of the US dollar against the Japanese yen," with a target level of 1 USD to 142.00 JPY by the end of October. Recent focus also includes speeches from officials such as Bank of Japan Policy Board member Junko Nakagawa regarding the possibility of a rate hike before the end of the year.