From: Barrett, Paul S Sent: Friday, October 30, 2015 3:53 PM To: Jeffrey Epstein ([email protected]) Cc: Barrett Team; Brad Wechsler Subject: JPY Jeffrey I am not sure it goes to 110 but long JPY v short KRW still makes sense. Paul Global Rates & FX Research BoJ changed reaction function, not preemptive any more: BoJ to hold until Nov.2016 & USD/JPY may break 110 <Monetary Policy> • The BoJ did not ease today, even though the Bank revised down GDP and inflation outlook and pushed out the timeline of achieving 2% inflation target. • The details of Outlook Report and Kuroda's comments at the press conference were rather downbeat. The Bois policy does not appear preemptive any more. " We now believe that the BoJ will ease in November 2016, when the BoJ is expected to push out the time line again, although earlier easing is possible. • Kuroda remained confident that there the BoJ has plenty of tools for additional easing, including an increase in JGB purchases. <Foreign Exchange> • We continue to see that USD/JPY has already hit the peak of this year and the pair is likely to see a down ward trend toward next year. EFTA_R1_01598115 EFTA02481684