JPY to remain in demand says BNY Mellon reminding us of JPY's solid relationship with US Treasury yields. But the JPY has only strengthened substantially against USD and EUR, it has remained relatively stable against a large number of other crosses.

BNY Mellon's Neil Mellor therefore sees JPY as potentially more than just a safe haven. "JPY--as one of the most liquid currencies in the world--has simply emerged as the sole, plausible alternative post-crisis to the world's two prime reserve currencies, amidst justifiable doubts over their stability and debt-led debasement," he says.

Adds that IMF COFER data show international reserve holdings of JPY have risen 47% since 2010.