Rabobank’s Senior FX Strategist Jane Foley says speculation over a structural shift in Japanese Yen (JPY) valuation is challenging traditional carry trade assumptions and Japanese investors’ appetite for foreign assets. Rising JGB yields, resilient growth and stronger real wages increasingly support the Yen, particularly if the BoJ turns more hawkish.
Resilient data and BoJ risks back Yen
“A second factor impacting sentiment relates to market speculation as to whether there has finally been a sea-change in the value of the JPY. This has implications for long-standing views on the carry trade and also on whether domestic Japanese investors may…
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