MUFG with two reasons for the yen rise … and a word of caution

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.

This article was written by Eamonn Sheridan at www.forexlive.com.