The Japanese yen remains far and away the most attractive currency in the developed market space owing to its relatively high and rising real yields. USDJPY is likely to trade well below 100 and potentially below 90 over the coming months as the yen acts as a store of value amid widespread global currency debasement.…
The recent sell-off in long-duration U.S. bonds has taken the wind out of yen’s sails, with yen crosses pushing to new rally highs and USDJPY rising to three-week highs. However, the yen’s decline is increasingly at odds with its fundamental drivers and we expect double-digit gains in the currency over the coming 12-24 months. The…
The yen remains out of line with its fundamental drivers, thanks in part to a surge in yen crosses which are at risk of reversing should the risk recovery unwind. In the event of continued dollar weakness, we would expect the yen to join in with the other majors, or at least not depreciate. After…