FXStreet notes that the global COVID crisis is set to keep the yen well supported.  With yields in the US set to drop further, economists at MUFG Bank see USD/JPY falling further going forward. 

“The main focus of the BoJ will likely remain upping purchases of ETFs. On four occasions in March, the BoJ purchased a record JPY 201.6bn worth of ETFs.”

“PM Abe indicated that he was going to act with another fiscal stimulus package to be announced in April. This would include cash handouts and protection for companies to help maintain employment.”

“USD hedging costs are set to decline going forward as Fed monetary policy and liquidity injections drive US yields further lower, this will encourage greater hedged outflows from Japan that will remove one element of support for USD/JPY and help push the rate lower.”