... outperforming all 31 other major currencies this year as Japan’s current-account surplus makes it attractive for investors seeking a haven. Bank of Japan Governor Haruhiko Kuroda’s Jan. 29 decision to adopt negative interest rates has failed to rein in the currency’s advance.
“All existing drivers still point to more yen strength,” said Koon How Heng, senior foreign-exchange strategist at Credit Suisse’s private banking and wealth management unit in Singapore. “The BOJ will need to do more to convince the markets about the effectiveness of its negative interest-rate policy.”
That’s a drawback for the governor. He needs a weaker yen to help meet his target of boosting Japan’s rate to 2 percent and keep exports competitive.
So its a game of Yin and Yen ....market wanting to buy Yen as a safe haven, and BOJ wanting it weaker for exports