BUZZ-COMMENT-Stronger yen could have big influence in the future

June 19 (Reuters) - A stronger yen, that should evolve if expectations for U.S. and Japanese monetary policy are met, could have big influence in the future. Should Japan's currency rally, it will encourage investors to unwind popular carry trades, and moves stemming from this change will boost volatility which is bad for these trades too. Should currency markets wake-up once the Bank of Japan and Federal Reserve change policies that have determined market trends for a long time, then speculators may seize the opportunity to make money. The resulting increase in trading volumes could spur a shift away from investments which mainly depend on currencies not moving. If this occurs then currencies supported by interest rates similar to those in the United States, or higher, may be hard pressed, not only by investors paring risk, but by speculators taking risk. Big FX bets like those on euro, pound and Mexican peso rising would be threatened. Bets against currencies which are undermined by interest rates well below those in the U.S. like the yen, Swiss franc, Thai baht and Taiwan could undergo the biggest changes. Even minor corrections would be viewed to be large by traders who have witnessed little action for a long time. Big and unexpected change is sure to heighten risk aversion favouring speedy changes in betting and a rise in demand for assets thought safe like yen, franc and gold, For more click on FXBUZ <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ USD vs funding currencies https://tmsnrt.rs/3xoOx6O ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> (Jeremy Boulton is a Reuters market analyst. The views expressed are his own) (([email protected]))