Mitsubishi UFJ: The yen may still have room to depreciate.

On May 27, Mitsubishi UFJ analyst Derek Harpenny pointed out in a report that the depreciation of the yen due to the sharp fall in long-term Japanese government bond yields may be limited. Speculation that Japan is considering adjusting its bond issuance schedule to support ultra-long-term bonds has led to lower yields. Halpenny said there may still be room for the yen to depreciate, given the magnitude of the drop in yields. But he also noted that the yen could re-enter the market when the exchange rate weakens, given the weakness of the dollar, President Trump's unpredictable trade policies, and the prospect that the Federal Reserve may cut interest rates later this year.