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Mixed price action for the Japanese yen this week, battling weak Japanese economic updates, a state of emergency extension, and against early positive risk sentiment.

Yen bulls were able to put together a rally at the end of the week on negative risk sentiment flows, but unfortunately it wasn’t enough to get into a net positive gain into the weekend.

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

Japanese Headlines and Economic data

Monday:

Bank of Japan expands stimulus as pandemic pain worsens

BOJ Governor Kuroda’s comments at news conference

Global risk sentiment swung positive to start the week as countries begin to reopen their economies, lifting the risk currencies higher against the yen through Wednesday.

Tuesday:

Japanese jobless rate rose from 2.4% to 2.5% as expected

Bank of Japan core CPI +0.1% y/y vs. +0.2% previous

Wednesday:

Japan’s Abe says impossible to hold Olympics unless pandemic contained

Volatility on the session for the yen picked up, initially higher with no apparent catalyst but then turned lower, likely on continued positive sentiment (reopening of economies & positive results from early Gilead trials for remdesivir)

Thursday:

Japan’s factory output, retail sales slump as virus hits economy

Japanese consumer sentiment worsens sharply on coronavirus

PM Abe informally decides to extend state of emergency in Japan

BOJ may hold emergency meeting for new loan plan to combat pandemic

Japan Housing Starts: -7.6% in Mar. vs. -12.3% in Feb.

Friday:

Japan’s factory output, retail sales slump as virus hits economy

Japan’s Abe says leaning toward extending state of emergency on May 4

The Japanese yen rallies during the Friday session as global risk sentiment shift negative, likely on headlines that the U.S. is looking to take action against China like new tariffs and as U.S. equities fell during the Friday session, lead by weakness in Amazon.