The conversion of Japanese yen exchange rate is based on the current average exchange rate of four state-owned banks: Bank of China, Industrial and Commercial Bank of China, China Construction Bank and Agricultural Bank of China. The result is: 1 JPY =0.058 RMB (CNY), and the result is: 1 RMB = 17.232 JPY (JPY).

1. Will the yen appreciate?

First of all, at present, the financial system of our whole world is dominated by the US dollar. For example, after the financial crisis, the United States will spend the financial crisis by issuing a large number of government bonds and printing more dollars. This is because the current overall financial system is centered on the US dollar. As an agent of the United States in East Asia, Japan will not allow the yen to depreciate sharply under the hegemony of the dollar. Secondly, the author thinks that the reason for the sharp decline of the Japanese yen epidemic is that the COVID-19 epidemic has repeatedly appeared in India and Japan, but with the assistance of the international community, the Japanese COVID-19 epidemic will definitely subside. As a sudden disease, it can be treated under the existing medical conditions. Therefore, in this context, the yen will certainly withstand the impact of the COVID-19 epidemic and appreciate in the future. Finally, Japan, as the third largest economy in the world, has strong economic strength, which makes the Japanese government not allow the yen to continue to fall. When this happens, the Japanese government will take unnecessary measures to ensure the strength of the yen. From this perspective, the yen may also appreciate.

2. Is the yen still a safe-haven asset?

Currency fluctuation is a normal phenomenon, and blind currency appreciation is not conducive to national exports, so the government will adjust its monetary policy appropriately according to its own economic situation. Japan is still at a negative level, but at the same time, after 20 19, the yen exchange rate is actually higher than the average levels of 20 13-20 15 and 20 17. By analyzing the Fukuda yen index, we can see that even at the current level of 94, the yen exchange rate is at a relatively moderate level since 20 13, and the exchange rate is still high. The global low interest rate environment is a temporary policy. When the Japanese yen fell to a key position, the yen exchange rate was relatively cheap. When the interest rates of the central bank and Japan are still negative, the carry trade may come back to push up the yen exchange rate.

Therefore, temporary fluctuations do not affect the safe-haven status of the yen. In the long run, the yen is still a safe-haven currency. For investors who want to invest in Japanese real estate, this is also a good time to allocate yen assets to buy on dips!