Mitsubishi yen: Japanese yen is unlikely to be strong without catalyst

On 7 July, Lee Hardman of Mitsubishi Japan Union Bank stated in a report that investors' increasing stakes on the weak yen highlighted the potential for the currency to pick up when the situation turned around, but this seems unlikely in the short term. “There is currently no obvious catalyst to trigger the Japanese yen to get stronger.” After the announcement of the new multi-year investment framework by the Government of Japan, investor concerns about fiscal policy increased. He stated that this had increased the pressure on the yen, which had previously been hit by rising energy prices and recent indications by the Federal Reserve that interest rates might rise. Further interventions by relevant sectors in Japan to support the yen may not be able to reverse its weakening trend。