Japan's domestic currency this year has experienced many strong fluctuations and even weakness, but analysts believe that the yen is still a safe asset.

On April 29, the Japanese yen had its lowest point in 34 years compared to the US dollar, at 160 JPY per USD, but then recovered thanks to intervention by authorities.

In early July, this currency continued to hit a 38-year low against the USD, at 161.9 JPY per USD. This caused authorities to spend tens of billions of dollars to intervene for the second time this year.

After the Bank of Japan (BOJ) decided to raise interest rates at the end of last month, the Japanese stock market and domestic currency continued to record large fluctuations. The Nikkei 225 index in the August 2nd session fell the most since 1987, while the Japanese yen returned to increase sharply, to 142 JPY per USD.

The yen is famous for helping protect investors during times of economic and political turmoil. Therefore, the fact that this currency has fluctuated strongly many times this year raises the question of whether this currency is still a safe asset or not.

On CNBC, analysts said that the yen's position remained unchanged, mainly because these fluctuations were "predictable". "We believe that the yen can still be called a safe asset, as Japan is currently the world's largest foreign creditor. They also maintain a current account surplus and have stable inflation," Ryota Abe, economist at Sumitomo Mitsui Banking Corporation said. Current deficits typically weaken currencies, while surpluses increase their value.