Yen is Top Performer for 2016 So Far - Nomura
Analysts at Nomura explained that the Japanese yen (JPY) is the top-performing currency year-to-date.
"Strong gains though late March, reflecting market disappointment with easing steps unveiled by the Bank of Japan (BoJ) were followed up by an additional leg higher in the currency after the BoJ failed to introduce more easing measures at its April policy meeting.
USDJPY’s weakening trend has been compounded by a broader trend of risk aversion (fueling safe-haven demand for the JPY) and a narrowing in expectations for Fed-BoJ policy divergence.
Further JPY gains may force the BoJ to take additional and aggressive easing steps to mitigate negative (deflationary) forces on the domestic economy."