The Japanese yen out performs once again in what was a more subdued trading environment than previous weeks.
Worrisome Coronavirus and global economic headlines were likely the main drivers of yen strength in this week over the call of national emergency in Japan and weak Japanese economic updates.
Japanese Headlines and Economic data
With no news events or economic data updates from Japan, the Japanese did manage to see a little bit of action on Monday and Tuesday.
The broad move was net positive heading into the Wednesday session with no clear direct catalysts, but arguably could have been on the weak U.S. dollar sentiment mixed with a focus on global economic weakness (Coronavirus ‘Great Lockdown’ to shrink global economy by 3% in 2020: IMF) to support the yen higher.
The Japanese yen pushes higher on the session, likely on negative headlines to support negative risk sentiment. Economic warnings and cheap oil may be the culprits behind traders turning sour on risk for the session, as well as news of the U.S. withholding funding from the World Health Organization during a pandemic.
Broad move lower in the yen against the majors during the end of the U.S. trading session, perhaps on prospects of the U.S. having a plan to re-open the economy (Trump suggests U.S. states re-open economies in three phases in new guidelines).
Small bump higher in the Japanese yen during the Asian trading session, probably on the round of terrible economic data from China. But risk-on sentiment took the lead during the U.S. session as equities most likely rallied on coronavirus treatment hope.