Shusuke Yamada, chief foreign-exchange strategist at Bank of America Merrill Lynch, also points out that yen gains will be capped over the longer-term due to the country’s large trade deficit, strong outward foreign direct investment and domestic institutional investors purchasing foreign assets.
“The fundamentals point still to a weaker yen; that hasn’t changed,” Yamada said in the article.
More aggressive currency traders can capitalize on yen weakness through the ProShares UltraShort Yen (NYSEArca: YCS), which tries to reflect the daily -2x or -200% daily return of the U.S. dollar price of the yen. YCS is down 8.5% year-to-date. [A Short Yen ETF to Hedge Against Further BOJ Action]
CurrencyShares Japanese Yen Trust
For more information on the yen currency, visit our Japanese yen category.