A note from MUFG on the stronger yen this week.
- says JPY has risen due to safe-haven demand and speculation that the Bank of Japan could raise interest rates at its December (18 - 19) meeting
MUFG with a reason to be cautious:
- "Tariffs on Japan imports to the US remain a risk and higher U.S. yields will limit USD/JPY downside moves”
Overall for JPY, MUFG says the currency should out perform other (non USD) G10 FX, specifically pon BOJ rate hike prospects.
