Barclays says the yen is soon set to regain its status as a preeminent haven currency

A note via Barclays saying that the yen is set to resume its status as a safe haven currency after the dominance of the USD.

• “yen is regaining its allure as a safe haven as the BOJ mulls an end to YCC and the global inflation and energy shock of 2022 fades"
• "We expect USD/JPY to decline over the coming year, towards 123 in Q1 24."

Yen headwinds have included higher energy prices and a worsening rate differential ... but as energy prices fall and the global hiking cycle slows yen selling pressure should diminish

• “If global economic conditions deteriorate to the point that the BOJ shies away from YCC revisions, we would expect other central banks to begin easing,"
• “Yen strength will then be driven by tightening rate differentials and appreciation pressures could actually intensify, pushing USD/JPY below 120."

---

Meanwhile, we have the BOJ still to come today.

Earlier:

• Japan media report that the BOJ will conduct an examination of past monetary policy

And, previews:

• Bank of Japan monetary policy decision due today - preview ("target 128 for end of Q2")

• Preview - BOJ decision due Friday, 28 April 2023: "cannot fully rule out a change" in YCC

• BOJ meet this week - preview - YCC to be abandoned but not until July
• BOJ meeting preview - Deutsche Bank expect a policy revision, 3 scenarios
• Has BOJ Gov Ueda dismissed any change to YCC at this week's policy meeting? Looks like it

• BOJ meeting this week - preview - the BOJ may move on a 5-year JGB target option

Uea press conference will follow at 0630 GMT,0130 US Eastern time.