Political tensions elsewhere has investors moving funds into the Japanese Yen, presenting new opportunities for those looking to convert Yen into Sterling.

Why is the Japanese Yen gaining so much value at the moment?

The Japanese Yen has hit a 5-month high against the US Dollar and an almost 6 month high against the Pound in the last week.

The change in policy from Trump has left investors searching for safe havens, and this resulted in an increase in value for the Yen along with Gold in the commodity markets. Meanwhile the commodity currencies have all been negatively impacted by this lack of demand for riskier assets which is why the Canadian Dollar and Australian Dollar are trading around the lower ends of their recent trends against the Pound.

Fears surrounding the popularity of both far-right and far-left candidates in the French Presidential election have also contributed to the Yen’s strength, and the North Korean issue was a key topic during Trump and Jinping’s recent meeting which may have also contributed to investors rushing for safe haven assets.

Should I convert my Japanese Yen now?

For the past 5 years there have been few opportunities to convert Yen into Pounds at more favourable levels, so those that are risk adverse may wish to consider the current levels for at least part of the planned transfer in case risk appetite returns to financial markets.

Should risk appetite return within global markets I’m expecting to see the Yen lose some of its recent gains, as there are other major currencies investors can consider for a higher rate of return.

This is of course dependent on the relieving of the current geopolitical concerns and should the issues between the US and Russia continue I think we expect to see JPY continue to climb in value along with US Treasury Bonds, Gold and CHF.

If you’re planning to trade the JPY and are concerned of movements outside of the UK trading hours, feel free to make us aware as there are trade options that allow our clients to trade automatically with the use of a contract option. Speak to our team today on 01494 725 353 or email me here to learn more.


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