If the demand for Japanese Yen increases due to higher expected returns from Japanese stocks, what is the most likely underlying cause of this appreciation of the Yen?

When the demand for Japanese Yen increases, it usually means that more people want to buy Japanese currencies to invest in Japanese stocks. This rise in demand happens because investors expect to earn higher returns from these stocks, making them more attractive. As more people buy Yen to invest, the value of the Yen goes up compared to other currencies. For example, if an investor from the United States wants to invest in a Japanese company, they need to exchange their US dollars for Yen, which increases the demand for Yen and causes it to appreciate. Therefore, the main reason for the Yen's appreciation is the increased interest in Japanese investments, leading to higher demand for the currency.