The end of quantitative easing will definitely be yen positive. Government bond yields are going to rise and that increases the attraction of the yen.

In this light, we believe the pace of appreciation will likely be rather moderate in the coming weeks.

Although the People's Bank of China will retain the ability to heavily influence the exchange rate, more flexibility will likely present in coming weeks.

The yuan has moved more closely in sync with the overall performance of the region's currencies against the US dollar.

Authorities are opting for direct monetary policy instruments instead of allowing faster appreciation of the yuan to achieve the tightening effect. The pace of yuan appreciation will likely be rather moderate in the coming weeks.

We've seen the yuan go stronger even as the dollar had a big move up in its last trading session. That's abnormal and it's probably because the authorities are trying to use it for political effect.