The Japanese yen was under pressure for most of the week as U.S.-China trade optimism lifted global risk sentiment. And despite a last-minute run when the geopolitics turned sour, it wasn’t enough to change the yen’s fate as a net loser against the majors.
Overlay of Inverted JPY Pairs: 1-Hour Forex Chart
JPY Weekly Performance from MarketMilk
Japanese Headlines and Economic data
Monday – Tuesday:
- With a lack of catalysts from Japan, the yen took its cues from global risk sentiment, which was on the upswing to start the week amid further U.S.-China trade deal optimism. As usual in risk-on environments, the yen fell on the session and through the Tuesday session on news that the U.S. may have been considering dropping some tariffs on China.
Wednesday:
- BOJ debated feasibility of more easing in September: minutes
- Japanese service sector output declines for first time in over three years
Thursday:
- Mood of Japan manufacturers at its bleakest since 2013, outlook weak
- The yen popped higher during the Asia session on reports that the U.S.-China trade deal signing could be pushed into December. But it didn’t take long for the market to reverse sentiment after news that China says it has agreed with U.S. to cancel tariffs in phases
Friday:
- Japan’s key composite index rose in September, but Cabinet Office keeps assessment of recession
- Japan’s Abe tells cabinet to compile stimulus package to support economy
- Household spending rose at a record year-on-year pace before Japan’s October tax hike
- Japan September Real Wages Rise for First Time in Nine Months-Government
- Global risk sentiment turns sour to lift the Japanese yen after reports of internal opposition to the trade deal and after Trump said he has not agreed to roll back the tariffs on China.
