How would steepen yield curve affect yen?

[sg_investor]

Theoretically will yen become more valuable?

 

[Genosis]

The US$-Yen 'carry trade' will be in full swing!

 

[Shiny Things]

Theoretically will yen become more valuable?

I'm assuming we're talking about the JGB curve here, since you're talking about yen.

My intuition would be that a steeper JGB curve isn't going to have too much outright effect on JPY; the outright level of interest rates has a much stronger effect on FX, because at a very very macro level the thing that drives FX flows is the yields that people get for investing in a particular currency.

I might try and hop on a Bloomy this afternoon and do some rough analysis of this just to check my intuition, but I think the answer's going to be "not really".