Two of the most important features of the yen currently are a decline in the carry trade and a more bearish outlook for the Japanese economy. Both tend to strengthen the yen, as Japanese investors unwind their short yen positions in the first case, and Japanese foreign direct investment retrenches in the face of higher risk in the second case.
Even the high probability of rate hikes in the US later this year will not necessarily drive the yen lower û in the past, the dollar...
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