With Japan on holiday for most of the week, yen price action was mainly influenced by counter currency flows and global risk sentiment.
Japanese Headlines and Economic data
Risk-off sentiment picked up to lift the yen somewhat broadly higher during the Wednesday U.S. session as we saw more anti-China commentary from US President Trump and Secretary of State Pompeo.
Positive global risk sentiment picks up a bit during the Thursday Asia session, likely off of better-than-expected Australian trade data to push the yen lower. The continued trend of more economies ending lockdown restrictions and more positive news on Gilead Sciences’ COVID-19 drug remdesivir likely played a factor as well.
In combination with the net weaker economic updates from Japan above, the yen’s continued fall during the Friday session was likely a continuation of Thursday’s drivers, and possibly on not-as-bad-as-expected U.S. (20.5M jobs lost in April) and Canadian employment (2M jobs lost in April) updates.