USD/JPY: Traders should buy the pair ahead of next week's BoJ meeting, according to the BNP bank

In a note published today, BNP notes that weekly portfolio flows showed a recovery of capital outflows by Japanese investors after the big repatriation of funds during the last week of Q1.

"We expect an acceleration of capital outflows by Japanese investors on the occasion of the new Japanese fiscal year."

The bank also notes that an analysis of positioning continues to highlight a yen selling posture that is at its highest level since the beginning of Abeconomics.

"In this context, we believe that the risk-reward ratio is excellent for long USD/JPY positions in the context of the 30 April BoJ meeting. No further easing is expected, but short yen positioning should continue to progress before the event."