Japanese yen bulls were net winners as the negative lean in global risk sentiment on pandemic and economic slow down fears drove traders to safe haven currencies early in the week.
The remainder of the week was a choppy mess for the yen with no major drivers showing up, but it was able to hold onto its gains, falling only to the Greenback at the Friday close.
Japanese Headlines and Economic data
There were no major market drivers from Japan due to the holiday, so the net positive performance on the session against the majors was likely due to the continued negative lean on broad risk sentiment. This continues to be driven by a worsening situation with the pandemic, as well as a lack of fresh stimulus to combat the economic fallout and the rising odds of lockdowns.
Once again, no drivers from Japan on the session lead to JPY being lead by broad risk sentiment and counter currency flows. Overall, a mixed performance as risk sentiment trended positive during the U.S. session (Supportive comments from Jerome Powell?, U.S. tech sector bounce?), but JPY was able to out perform the comdolls and European currencies.