U.S. President Donald Trump is likely to take an aggressive approach to the yen when he meets Japanese Prime Minister Shinzo Abe this Friday in Washington, a forex strategist told CNBC.
Since taking office, Trump has made several critical remarks about trade between the two nations.
Trump said that Tokyo makes it "impossible" for the U.S. to sell cars in Japan and also blamed the Japanese authorities for an unfair monetary policy that clearly benefits Japan's exporters.
It is in the latter that Trump is likely to focus this Friday, Jane Foley, senior forex strategist at Rabobank, told CNBC on Wednesday.
"Trump is going to be fairly aggressive," she added.
According to the currencies expert, "Trump does have a point" when saying that the Japanese yen is undervalued.
"The Japanese effective exchange rate measured on the Bank of Japan's measure was at its lowest level two years ago, since 1973. It's come back a little bit but you're looking at many measures, a dollar which is overvalued against currencies such as the yen and the euro and Japan which is working with the yen which is at a very nice value thank you very much," Foley said.
The dollar/yen trade was at 112.17 on Wednesday morning at about 9 a.m. London time, down by about 0.2 percent.
As the meeting approaches, Foley added that it's "very difficult" to see how the currencies will perform.
"Safe-haven, tensions between Japan and China regarding the South China Sea, those sorts of issues will keep the yen pretty well-bid but going into this meeting it's going to be very difficult," she said.