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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.

Overlay of Inverted JPY Pairs: 1-Hour Forex Chart
Overlay of Inverted JPY Pairs: 1-Hour Forex Chart
JPY Weekly Performance from MarketMilk
JPY Weekly Performance from MarketMilk

Japan Headlines and Economic data

Monday:

Japan Manufacturing PMI improved to 48.7 in October from 47.7 Sept.

Tuesday:

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).

Wednesday:

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.

Some in BOJ urged scrutiny on COVID-19 response – Sept meeting minutes

Kuroda says BOJ will help keep FX moves stable, watching U.S. election fallout

Thursday:

Japan Services PMI: Services economy sees further fall in business activity

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.

Friday:

Japan’s household spending, wages slump as COVID-19 pain lingers