Investors seeking momentum may have Ultra Yen Proshares (YCL Quick QuoteYCL - Free Report) on radar now. The fund recently hit a new 52-week high. Shares of YCL are up approximately 15.4% from their 52-week low of $56.16/share.

But could there be more gains ahead for this ETF? Let’s take a look at the fund and the near-term outlook to get a better idea of where it might be headed.

YCL in Focus

YCL focuses on providing 2x exposure to the Japanese yen relative to the U.S. dollar. It is suitable for investors seeking to hedge exchange rate exposure or bet against the greenback and should never be used for long-term exposure. The fund charges 101 basis points in fee per year and has AUM of $3.2 million (see all Currency ETFs here).

Why the move?

Bank of Japan governor Haruhiko Kuroda surprised the markets by stating that the central bank will consider ending its ultra-easy money policies if the inflation target is reached by March 2020. This led to a rally in the yen. Moreover, Trump’s America First agenda has sparked fears of a trade war, as he told steel and aluminum industry executives in a meeting about his intention to implement a 25% tariff on steel imports and a 10% tariff on aluminum imports. This also contributed to the increase in the safe haven yen.

More Gains Ahead?

Zacks does not rank inverse and leveraged ETFs in view of their short-term performance objectives. YCL has a weighted alpha of 15.66. Although it doesn’t seem that appealing, recent events in markets might prompt yen ETFs to gain further. So, there is a promising outlook for those who want to ride this surging ETF a little further.

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