Here’s what we know about the yen pairs: since January, we saw the long expected yen strength on the repatriation flows from Japanese companies operating overseas. However, this trade came to an end with the end of March, which represents the beginning of a new Fiscal Year in Japan.
So, what can we expect now?
With the global economy expanding in a solid manner, we expect that money will flow to higher yielding assets, something that won’t be found in Japan, as it is still associated with risk-off environments.
Having this in mind, I’m long-term bullish on the yen pairs, so I’ll be looking for opportunities to buy them.