Risk of Yen strength as Tsunamis hit Japan

It is worth noting that even if it sounds counter-intuitive at first, cases of Tsunamis in Japan tend to result on Yen strength, as the market prices in expectations of repatriation flows after the sad news of an earthquake and tsunami. 

The demand for Yens grow as insurance companies plan to raise funds for covering its losses. Also, currency traders anticipate that Japanese companies will repatriate money from overseas to pay corporate taxes and to finance reconstruction. 

However, unlike in 2011, when the devastating sequence of tsunamis in Japan led to the Yen appreciate into fresh record highs, which required a rare coordinated G7 intervention in USD/JPY (pair surged to yen in response, up from a record low of 76.25), this time around, there is little risks of neither intervention (Yen levels much lower) nor the same magnitude of moves, as so far the tsunami warnings don't suggest the reconstruction will be as costly as back in 2011.