The Japanese currency shows excellent results. For the past few weeks, the yen has been rapidly rising against most of the global currencies. Historically, investors and traders have been considering the yen to be a safe reliable asset, which shrugs off various woes in the forex market.
Another reason for a high demand for the yen is the growing tension in relations between the US, North Korea and Russia. Donald Trump demonstrates his strong character and unflinchingly tightens sanctions. The US President's team says that Trump will not back down even if he has to start real military action against North Korea. All these political events make the safe haven assets more popular than ever, which means that the value of the yen is also growing. "The fading confidence in the Trump administration on repeated political missteps is central here, even as economic activities’ data stabilize," Macquarie Bank expert Nizam Idris said. "This is likely yet another important week for the dollar as traders await a slew of data, including PCE deflator and non-farm payrolls”.
It seems that the Japanese currency will be reaping the benefits of the tension in the global politics for a long time. Now there are no clear signals that the situation will change for the better, the US will forget about the problems, and Donald Trump will change his attitude towards Russia and North Korea. According to analysts, this means that the yen will continue to gain grounds.
