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Japanese markets have been closed for the Golden Week holiday, but there was enough going on around the world to prompt forex traders to lean bullish on the yen.

The Japanese Yen

Overlay of Inverted JPY Pairs: 1-Hour Forex Chart
Overlay of Inverted JPY Pairs: 1-Hour Forex Chart

Japanese Headlines and Economic data

Japanese markets have been closed for the Golden Week holiday. No economic releases during this period or any significant news catalysts from Japan, so the Japanese yen was mainly influenced by counter currency events and changes in global risk sentiment.

Overall, we did see a slight bullish lean for the Japanese yen this week, arguably on the surprise weak manufacturing sentiment data from China on Tuesday.  This likely spurred a pullback on positive global risk sentiment, which usually tends to benefit safe haven currencies like the Japanese yen.

Besides that event, the latest FOMC meeting and statement provided traders with the only other relatively uniform movement among yen pairs this week on Wednesday. After the initial mixed reaction, yen pairs continued to lean higher after the event on the idea of the Federal Reserve will continue to wait-and-see (i.e., no rate cuts) which sparked broad risk aversion, and put the Japanese yen mostly in the green on what was a very quiet week.