The reason why the yen has become a safe haven currency is:
1. Yen, as a low-interest currency, is a prerequisite for hedging. In the atmosphere of global economic stimulus, interest rate cuts are the trend of all countries, and currencies with high yields will depreciate, while the yen is as low as ever, and there is not much room for depreciation, so it is generally considered as a safe-haven currency.
2. Due to the traditional history of yen arbitrage. Because of the low interest rate of Japanese yen and the lowest financing cost, investors tend to borrow Japanese yen and buy high-yield currencies from other emerging countries. Once there are signs that other countries' currencies begin to depreciate, investors will immediately close their positions: sell high-interest currencies and buy yen, which will lead to the rise of the yen.
Japan's financial market is perfect, its economic system is developed, and its foreign exchange reserves rank second in the world. Its strong economic strength provides a foundation for currency stability.
Japan has superior geographical advantages. As an island country, it is not easily influenced by war, politics and market.