Japanese yen is the most undervalued major currency - UBS

The anti-risk Japanese yen (JPY) is the most undervalued major currency and could rise to 105 per US dollar in the next 12 months on haven demand and BOJ policy normalization.

Rationale

Expects BOJ to normalize its policy in early 2020 even without inflation reaching the 2 percent objective. 

Global growth slowdown could boost haven demand for JPY.

With wage growth on the rise, Inflation is looking to take hold.