Despite being undervalued based on PPP, the Japanese Yen has been depreciating for a few weeks due (probably) to a risk-on environment making the Yen as a safe-haven less attractive.
Being still undervalued, the Yen might be a cheap hedge against market downturns. Moreover, it seems to have reversed its downward trend and an appreciation against the Euro is now the base scenario for the coming weeks or months.
Being still undervalued, the Yen might be a cheap hedge against market downturns. Moreover, it seems to have reversed its downward trend and an appreciation against the Euro is now the base scenario for the coming weeks or months.