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JPY


Ali Farhad
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I have seen people say that it was never really a safe haven and it was just used as a funding trade, and that when there was risk off we just saw money flow back into the JPY as a result of people unwinding their risk positions.

However, I believe it is a simple case of the Japanese economy finally weighing on it's currency. They have had minus interest rates for I don't know how long, they have never met their inflation targets and they seem to have been constantly fighting a losing battle in terms of getting their economy going.

And with their GDP data being a big miss and the risks of the coronavirus to their economy in play. I think this has resulted in people starting to see that it is no longer as safe as it used to be. If you are looking for a safe haven asset to buy into I would suggest gold or the dollar.

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