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.”

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Meanwhile, we have the BOJ still to come today.

Earlier:

And, previews: