BofAML: There's no way we can see expensive yen and expensive developing currencies

A strange situation is present in the currency markets at the moment, according to experts from the US investment Bank of America Merrill Lynch. Investors are long in currencies in emerging markets as well as in the yen! According to analysts of the financial institution, this situation can not last long.
The bank expects the yen to fall cheaper compared to other major currencies and the developing currencis situation to become mixed later this year when the Fed continued to raise interest rates. The tax reform of the new president, is also expected to have a positive impact on the yen against the dollar.
With a potential correction for the US markets, which is considered unlikely at this stage, the yen is likely to appreciate, and emerging market currencies to become cheaper, the financial institution said. Even under this scenario, however, we will see a shift in the direction of trade in the yen accepted as an "island of salvation" and developing currencies.