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Forex pairs in this Article » (Barcelona) - Takahiro Sekido, Japan Strategist at the Bank of Tokyo Mitsubishi UFJ feels that capital outflows should limit JPY appreciation risk.

He notes that in autumn 2011, he shifted his JPY outlook to depreciation on the strong momentum of the Japanese corporate sector's increase in foreign direct investment.

He writes, "Although large enterprises in manufacturing already shifted their business portfolios overseas largely, i) the service industry, especially retailers and ii) SMEs will continue to shift their business portfolios overseas to avoid high retail competition and ageing population risks, shortage of matured labour forces, in the domestic market. The government and the BOJ will continue to encourage overseas investment by the Japanese corporate sector."
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