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Japanese Yen ETF (FXY) Hits New 52-Week High

Sanghamitra Saha

For investors seeking momentum, CurrencyShares Japanese Yen Trust FXY is probably on radar now. The fund just hit a 52-week high, and is up about 6.7% from its 52-week low price of $83.54/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea on where it might be headed:

FXY in Focus

FXY appears a great way to play a rise in the yen relative to the U.S. dollar. It tracks the movement of the Japanese yen relative to the U.S. dollar, net of Trust expenses, which are expected to be paid from the interest earned on the deposited Japanese yen. The product has accumulated $217.3 million in its total asset base and has 40 bps in expense ratio (see: all the Currency ETFs here).

Why the Move?

The Japanese currency ETF has been an area to watch lately as investors are flocking to safe havens amid heightened uncertainty and volatility. This is especially true, as the global fundamentals are getting worse with relentless geopolitical tensions and uncertainty over the Fed’s rate cut in the near term as well as U.S. tariffs. In particular, yen is considered a safe haven currency in times of uncertainty.

More Gains Ahead?

The fund has a Zacks Rank #3 (Hold) and a positive weighted alpha of 4.10, which hints at more gains. So, there is definitely still some promise for those who want to ride on this ETF a little longer.

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Invesco CurrencyShares Japanese Yen Trust (FXY): ETF Research Reports
 
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