As expectations of rate hikes in Japan and the US spread, views have emerged that the yen has reached excessive levels of strength, prompting market participants to focus on the potential for a correction. Early signs of a resumption of carry trades have also been identified.
Against a backdrop of reports that expectations of rate hikes in Japan and the US are strengthening, the yen is said to have gone through a period of rapid appreciation. Some market participants also believe that there is room for a correction in the event of excessive yen strength.
Meanwhile, discussion continues over the possibility of a resumption of carry trades, and attention is focused on developments ahead.