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Mixed week for the Japanese yen, but ultimately closed as a net winner thanks to global risk sentiment leaning negative and counter currency flows.

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:

Japan’s coincident index rises 1.8 points in July

Tuesday:

Japan’s Q2 GDP revised down to annualized 28.1% contraction

Japan’s July household spending falls 7.6% year-on-year

Japan’s current account surplus fell in July by 27.4% to 1.468T yen

Japan August bank loans rise record 6.7% vs year earlier

Japan real wages decline for fifth month in July as pandemic woes persist

Japan’s economy watcher sentiment in August highest in 11 months

Despite net negative numbers from Japan released on the session, the Japanese yen saw strength during the U.S. session. This was likely a reaction to broad risk aversion sentiment sparked by broad weakness in the U.S. equity markets and rising no-deal Brexit fears.

Wednesday:

There doesn’t seem to be a catalyst for the yen’s turn lower on the session, and with no major news driving broad risk sentiment on the session, it’s likely this was a technical bounce after broad risk aversion sentiment since the beginning of September.

Thursday:

Japan’s rebounding July machinery orders tempered by fragile business outlook

The yen was quiet for most of the session with exception to a small bit of choppiness during the ECB monetary policy event (European Central Bank keeps rates and stimulus program unchanged, despite stronger euro), leading to a bounce higher as U.S. equities resumed their selloff to send traders back to safe haven assets.