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The Japanese yen takes the top spot this week, riding higher despite weak economic updates from Japan.

It’s likely traders were buying yen this week as broad risk sentiment leaned more negative than positive, expectations of the new PM to continue Abenomics, and possibly on positive vibes from the latest Bank of Japan statement.

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 woes keep Japan business mood gloomy in September – Reuters Tankan

Japan Indices of Tertiary Industry Activity: -9.4% y/y

Japan’s Suga wins party leadership race, headed for premiership – This may have been the main driver for the yen’s strength on the session, on the idea that the new Japanese Prime minister Yoshihide Suga, will continue the simulative policies ushered in by his predecessor Shinzo Abe (aka Abenomics)

Wednesday:

Japan’s exports extend double-digit declines as pandemic hits demand

New Japan PM Suga: will support people who have suffered economic damage

Thursday:

BOJ leaves monetary policy unchanged, upgrades economic assessment – this was not a a huge market mover, as usual, but with their outlook on the economy improving, its likely we won’t see any simulative moves from the BOJ (a supportive scenario for the yen).

BOJ’s Kuroda Vows to Closely Coordinate With Suga Government

Friday:

Japan’s August consumer prices fall at fastest pace in four years

Japan turns to ‘Suganomics’ — but analysts say the policy will likely continue Abe’s legacy

Broad move higher in the yen during the U.S. trading session as global risk sentiment turned negative, likely sparked by a combination of scenarios range from low expectancy of a new stimulus package from the U.S. government, the possibility of the U.K. locking down once again, and as the U.S. tech sector continues to fall.