https://www.actionforex.com/action-insight/special-topics/162104-fx-2019-jpy-to-shine-in-risk-off-environment/We are not convinced that the “flash crash” of USDJPY last Thursday was driven by Apple.Inc’s lowering of guidance, especially on China. The rally in Japanese yen during the time did not just appear in USDJPY, but also other JPY-crosses, such as AUD and TRY. There are factors underlying JPY that caused such rally. Indeed, strength in JPY would likely persist in 2019. Besides valuation, safe-haven demand amidst risk-averse market environment, liquidation of foreign investment positions by Japanese investors and slower rate hike path by the Fed are factors supporting the yen this year.
