It was a choppy week for Japanese yen traders as improving economic updates from Japan mixed with pandemic worries, risk sentiment and counter currency influences.
Japanese Headlines and Economic data
After Asia and London session strength, the yen fell during the U.S. trading session, possibly on rising positive risk sentiment thanks to broad U.S. equity strength (once again lead by the tech sector) and/or positive coronavirus news (Eli Lilly starts late-stage study of coronavirus drug in nursing homes)
The yen broadly fell during the Asia session, possibly on rising global risk sentiment sparked by positive economic updates from the region (New Zealand unemployment at 4% in surprise fall during coronavirus pandemic, Australia’s services activity recovery gathers pace in July, Caixin: China’s service sector growth sustained at market rate in July)
No major catalysts from Japan on the session, so the move lower during the U.S. session may have been on positive global risk sentiment (possibly ignited by the better-than-expected U.S. initial jobless claims?)
The Japanese yen rallied broadly during the Friday session (with exception against the Greenback). On top of the positive updates from Japan, JPY likely saw support on rising risk aversion sentiment as tensions rise between the U.S.-China grow and the U.S. government fails to agree a new stimulus package deal.