Westpac: the weakening of optimism in the markets to benefit the yen

Yen today once again demonstrates the growth and Sean Kallou, currency strategist Westpac, notes that, while this can be partly attributed to the liquidation of short positions against the backdrop of falling stock market, is also to draw attention to the fact that cash flows have recently become more positive for the Japanese currency. He drew attention to the fact that the Ministry of Finance of Japan indicated to reduce the interest of Japanese investors for foreign assets, while the Japanese assets in the recent demand from foreign accounts. Meanwhile, according to Kallou in the coming weeks we will probably see another bout of unrest on the prospects of strengthening the world economy that would support an increase in volatility in the market. The latter would be a very positive development for the Japanese currency, although it is noteworthy that in a couple of the dollar increase in the yen may be not so active. Moreover, Kallou drew attention to the fact that the historical volatility of the dollar, with an increase in the use of the Great location bulls than the yen, the U.S. currency was still enjoys great popularity as a safe haven asset, and another wave of risk are likely to support the growth of the dollar / yen .