With no major catalysts from Japan this week, the yen was mainly influenced by broad risk sentiment and counter currency flows.
Overall, the Japanese yen takes it to the chin thanks to a bounce-back in positive risk sentiment, as traders turned their focus from rising COVID cases to the U.S. elections where the uncertainty of what we policies we may see in the future starting to fade away.
Japan Headlines and Economic data
No major Japanese catalysts on the session, but we did see a somewhat strong move lower in the yen on the session, likely due to rising risk sentiment that may have been sparked by positive stimulus news from the U.K. during the London trading session (UK FCA to announce further proposals to support consumer credit borrowers impacted by coronavirus).
Financial market volatility picked up quickly during the Asia trading session as the votes started to be counted for the U.S. Presidential and Congressional elections. The Japanese yen did move with the flow as traders bounced back between fears of a long wait before we get the results, and false claims by Trump of winning the Presidential bid.
Broad risk sentiment flipped positive during the London session to take the yen lower, likely due to traders getting more confident that a Biden win could bring about a massive stimulus program and less regulatory risk in the U.S.