The Japanese Yen may rebound due to valuation reasons.

Nicolas Jullien of Candriam stated in a report that the Japanese yen is undervalued after recent weakening and may rebound in the medium term. He mentioned that based on valuation indicators, the yen is undervalued and is close to a level that often attracts attention from Japanese authorities who may intervene to support the currency. He said, "Based on this, we are willing to tolerate short-term fluctuations in exchange for medium-term asymmetry." The yen recently fell as the market bet that Prime Minister Shinzo Abe's plan to hold early elections to strengthen his power would lead to loosening fiscal and monetary policies. Data from the London Stock Exchange Group shows that the US dollar rose 0.3% against the Japanese yen to 158.57 yen, after reaching an 18-month high of 159.45 yen last week.