Saudi Arabia’s intervention in Yemen overnight, a rally in oil prices and a sell-off in risky assets are making the Japanese Yen an attractive trade, says Saxo Bank’s John Hardy.

He says it is difficult to assess how long the markets will be driven by these developments, especially as the sell-off in US assets began well before news of the military intervention in Yemen broke. 

For the time being, JPY looks like the best trade against other currencies such as AUD, GBP and NZD.