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Why the Yen is a safe haven currency?

hey guys it's Andrew and welcome to

today is trading tip why is the Japanese

yen a safe haven currency we often see

it rising value when we have difficult

tough economic times in the financial

markets or if there is some fear around

from a geopolitical perspective the

bottom line is when stock markets

decline we generally see the Japanese

yen rise in value and it is amongst one

of the three currency markets safe

havens the US dollar the Swiss franc and

the Japanese yen but why is the yen a

safe haven currency well o habits die

hard in financial markets and when we go

back 20 30 40 50 years Japan has always

had positive trade surpluses meaning

that they export more than they import

the debt that Japan has often over the

course of the last 20 30 40 years the

debt has been growing but a lot of that

debt has been internally here inside

Japan recently in the past 10 or 15

years that debt is starting to spread

around the world and there are some

traders economists and analysts are

saying Japan no longer really does have

the country the economy and the right to

call itself a safe haven currency but it

still remains a safe haven currency

today another reason why by the way the

reason why that trade surplus concept of

exporting more than they're importing in

the debt being inside Japan and why

Japan is trusted and why does the safe

haven currency is because exactly that

it's a trusted economy so therefore the

Japanese are trusted to pay up when it

comes time for their debt therefore they

become that safe haven currency now I

want to share with you another reason

why the Japanese yen is a safe haven

currency interest rates in Japan are

actually in the negative they've been

very very low for long

long period of time so investors inside

Japan mums and dads who by the way are

some of the biggest savers in the world

of money the average Japanese person has

more money in the bank than any other

country around the world and of course

if they're getting zero for their money

in the bank what they're going to do is

put that money to work somewhere else

around the world to try and get a high

return on investment so they might

invest in the u.s. they might invest

Australia they might buy some British

pounds they might invest in some bonds

outside of Japan but if there is

economic uncertainty if the stock market

Falls sharply what are those investors

going to do they're going to repatriate

that money back to Japan and by doing so

they have the money that is outside of

Japan coming back in a Japanese yen

which forces the value higher so the

bottom line is the reason why the

Japanese yen is still today a safe haven

currency is because the market trusts

Japan to pay they had positive trade

balances for many many many years and

they do have a lot of money that is

floating around the world when we see

economic uncertainty when we see

geopolitical events that money floods

back into Japan and forces the price of

the yen higher don't ever forget Japan

is the third largest economy in the

world it has become a little bit of a

basket-case financially in the last 20

years and in my lifetime I'm not sure

whether or not they will still maintain

that safe haven currency status but for

now they do and I hope today's video

helps you understand a little bit more

about why the yen is a safe haven

currency if we can help you further with

regarding understanding the financial

markets in fact you can actually receive

all of my personal positions here at

trading mastery all you need to do is

jump across to the website trading

mastery kaamdar you there's a free mini

course waiting for you there I look

forward to seeing you in our next video

bye for now