FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, notes the bid tone around the Japanese currency.
"The yen has continued to strengthen modestly in the Asian trading session alongside weakness early this week in global equity markets. Still the up trend in global equity markets remains firmly in place with the MSCI World equity index having regained upward momentum in late May and has since been recording fresh record highs."
"The yen has so far failed to weaken alongside the recent improvement in global investor risk sentiment with the trade-weighted index having remained relatively stable since late May. Our short-term valuation models are signalling that the yen appears modestly overvalued in the near-term creating scope for some catch up yen weakness."