Pro: Japanese Yen, Not The Euro, Is A Safe Haven Play Following Brexit

It may seem like a strange concept for investors to grasp, but according to Simon Derrick, an analyst at BNY Mellon, a safe haven for investors post-Brexit vote is the Japanese yen.

Speaking as a guest on CNBC early Friday morning, Derrick stated the Bank of England's chief Marc Carney made it "very, very clear" that "something is going to happen" to ease monetary policy.

The analyst added that the Brexit fallout is also prompting central banks from across the world to adapt to the new changes in the global economy and implement their own new measures.

Derrick suggested the likelihood of the U.S. Federal Reserve introducing a rate hike in the near term is now "pretty much zero." This represents a shift in policy as many were expecting at least one rate hike in the near term to be an almost certain event.

Related Link: Post-Brexit Panic Isn't Over, CNN Money's LaMonica Says

Derrick continued that one of the greatest safe havens for investors in the post Brexit world is Japan and its national currency. In fact, money is already flowing into the currency, which is trading close to the $100 per U.S. mark.

On the other hand, the euro has demonstrated a pattern of rising on "risk days" but Derrick thinks investors should avoid the currency which failed to rally in the hours after the Brexit voting outcome.

Derrick added that the bigger issue for the euro is the growing euro-skeptic movement in countries like Italy and the continent wide currency will retest the $1.04 to $1.05 level (from its current $1.11) as the "euro concerns grow."