Japanese politics has a big influence on the Yen. The Yen goes up when the elected government implements policies help improve the economy. The continuation of similar economic policies as last year, which appear to be working, will mean the Yen will likely go up.
Why is Japanese currency so high?
Japans trade strength lies in manufactured goods rather than commodities, but the idea is the same. A large trade surplus due to export sales of cars, cameras and electronic devices has traditionally meant a high demand for yen by foreigners to pay for these products.
Is it a good time to buy yen?
It turns out the best time to buy Japanese Yen is not now! There is a regular-ish cycle to the Japanese Yen exchange rate and that highlights that the Pound is most frequently stronger against the Yen in January.
Why pound is so expensive?
Some of the UKs top exports include various machinery, cars, precious metals and minerals, pharmaceuticals, and more. With Britains inflation rate lower than many countries, its purchasing power is therefore higher. This is one reason why the pound exchange rate is strong and why it almost always is.