Edmond de Rothschild Asset Management says recent gains signal the start of
a broader correction to a long-held undervaluation. Strategy chief Michael
Nizard wrote that for years the yen was driven mainly by the US-Japan rate gap
and its role as a funding currency for global carry trades; it is now trading
increasingly on its own fundamentals. He added the yen may be resuming its role
as a fundamentals‑driven currency and that any pullbacks in yen crosses should
increasingly be treated as opportunities to rebuild or add long yen positions.
