The Japanese yen, like so many other major currencies this year, has been rallying against the US dollar. Its currently up 5.9% year-to-date, leaving the USD/JPY perched at 106.40. Deutsche Bank thinks the yen is going to get stronger — a lot stronger. “We believe the early year move was the beginning of a trend reversal lower in USD/JPY,” says Mallika Sachdeva, FX stratgeist at Deutsche. “It is tempting to rationalise JPY strength by pointing to market volatility and the risk of trade wars. These were indeed important catalysts. “But structural trends in FX typically have a flow story behind them, which combined ... (full story)