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The Japanese yen pulls out a net positive performance as negative global risk sentiment slightly outweighed more negative economic updates from Japan.

In the end, the yen did well against the usual risk currencies like the comdolls, while falling against the other “safe havens‘” like the Dollar and the Swiss franc.

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:

Pandemic stirs BOJ debate of Great Depression-like downturn
Japan looks to lift emergency declaration in most regions
Increased risk aversion on rising US-China tensions and fears of a new infection wave, spiked the yen higher against risk-on currencies during US session.

Tuesday:

BOJ Governor Kuroda: Central bank will do ‘whatever it can’ to beat pandemic fallout
BOJ near-term focus to ease funding strains, no need to buy municipal bonds for now
Japan coincident index drops 4.9 points to 90.5 m/m, the fastest pace since March 2011
More fears of a second coronavirus wave sparked risk-off sentiment and a yen rally during the Asia session, but hopes of an economic recovery as countries end lockdown restrictions turn traders to positive sentiment during the London trading session. Risk sentiment swings back to negative during the US session on the pandemic outlook and more headlines of rising US-China tensions.

Wednesday:

Japan’s service sector sentiment hits record low again in April
Japan Economy Watchers survey fell to 7.90 in April from 14.20 in March of 2020
Risk-on sentiment during London session on lockdown easing had the yen moving lower against the higher-yielding currencies, but it was a quick flip to risk-off sentiment during Fed Chair Powell’s warning of extended economic weakness.

Thursday:

Japan April machine tool orders slump 48.3% y/y -industry association
Kuroda Hints Cutting Rates May Now Rank Lower in BOJ Toolkit
BOJ’s Kuroda says no need to deepen negative rates now

Friday:

Japan wholesale prices drop 2.3% in April as crude oil prices plunge
Risk-off sentiment picked up during the Friday session, likely on a combination of weak economic updates from China, Germany, and the U.S., as well as on negative vibes on U.S.-China relations. (Trump administration moves to cut Huawei off from global chip suppliers)