USD/JPY: The Japanese yen to remain resilient in the face of global risk aversion – HSBC

The Japanese yen is still broadly performing like a safe-haven even though there have been some cracks in correlations, per HSBC. 

Key quotes

“The clear divergence where USD/JPY moved higher as the S&P 500 Index continued to fall in the second half of March should come down to the USD, not the JPY.”

“There is a low likelihood of renewed sharp portfolio outflows, and medium-term and longer-term flows across both the financial and current accounts argue for the JPY to continue to perform well during periods of risk aversion.”