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