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How much longer will yen strength weigh on the Nikkei?

April may prove to be a crunch month for our view that renewed currency weakness will allow Japanese equities to outperform again. If the yen fails to drop back in response to further monetary easing from the Bank of Japan, the Nikkei is likely to remain in the doldrums. But we still think that the central bank will cut rates again and boost its asset purchases soon, prompting a stock market recovery.

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