Yen is the currency to go with when times get tough

13.05.2019 / 20:58

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Investors can focus on the yen even more aggressively in a risk-averse market environment as the global trade outlook is getting worse.

With the reversal of US-China talks, the yen's risk response may become even stronger, Mazen Issa, TD Securities Foreign Exchange Strategist, commented. The relationship between the yen and the risk "is not as strong as it was before, but we expect this to change as the markets are facing a serious adjustment lower."

The rising tension between the US and China and the fall in stock prices will drive traders to traditional safe haven assets, such as the Japanese currency. The yen jumped 0.9 percent to date, the biggest move since March.

The next big support for the USD / JPY comes at 108.50, "but a movement down to 105 is not ruled out at all," Issa added.

Source: Bloomberg Finance L.P.

Graphics: Used with permission from Bloomberg Finance L.P.

Trader Aleksandar Kumanov

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Yen is the currency to go with when times get tough

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