The yen is expected to stay strong partly due to weakness in the U.S. dollar, which has made the greenback less attractive as a “safe haven” asset. As a result, the U.S. dollar-Japanese yen pair has traded down by 4.73 percent between Jan. 1 and Feb. 27.

A number of research houses, including Morgan Stanley and ING, have predict that the pair will continue trending downward.

“We see further room for JPY (Japanese yen) appreciation,” Morgan Stanley analysts wrote in a report last week. They expect the U.S. dollar to trade at 101 yen by the final quarter of the year, down from 112.64 yen at the start of 2018.

“JPY offers better investment prospects in our view and is more emblematic of a safe-haven currency than the USD at this point,” the analysts added.