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Will Japan follow Switzerland and cap the yen?

The yen initially fell against the dollar following the Swiss move to set a formal limit on the strength of the franc. As it happens, we do not think that the authorities in Tokyo are ready to do the same for the yen. Indeed, the redirection of some safe haven demand away from the franc might now add to the upward pressure on the Japanese currency. Nonetheless, the yen is still likely to end the year weaker.

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