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The Japanese yen was a net loser through most of the week, likely on a combo of net negative updates from Japan and broad risk sentiment leaning generally positive all week. 

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 to gradually lift COVID travel alerts from October

No major news from Japan to spark the broad weakness in JPY on the session, so it’s likely the rebound in risk assets after last week’s sell off was the main driver for the yen’s underperformance.

Tuesday:

Some in BOJ called for review of policy strategy – Sept meeting summary

Tokyo inflation stays negative in September at -0.1% m/m; services sector prices seemed to be a drag on the overall inflation picture

Wednesday:

The messy U.S. Presidential debate sparked a broad move in risk sentiment towards risk aversion and prompting some lift to the Japanese yen. Sentiment later reversed towards positive to likely put pressure on the yen on rising hopes of new U.S. stimulus package coming soon.

Japan’s August industrial output up 1.7% for third straight monthly rise

Japan August retail sales fall 1.9% year/year (vs. -2.0% expected)

Thursday:

Tokyo Stock Exchange suspends day’s trade after worst-ever system glitch

Japan’s factories suffer record 17th month of declining activity

Japan business sentiment perks up as hit from pandemic begins to ease

Japan ruling party heavyweight says to consider ‘large-scale, bold’ spending package – Nikkei

Japanese Manufacturing PMI reaches seven-month high

Friday:

Japan jobless rate hits 3-year high despite chronic labor shortage

We saw a spike higher in the Japanese yen during the Asia session as traders ran to safety after U.S. President Trump’s announcement on Twitter that he and the First Lady contracted COVID-19 increased the uncertainty of the upcoming U.S. presidential election.