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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
JPY
USD/JPY is just off session lows, the pair last 130.65/70, which is around 0.70% firmer in yen terms and still comfortably the best performer with the G10 space so far. We touched 130.57 a little while ago, while yesterday the pair based between the 130.40/50 region, so this could be a near term target.
- The lower US yield backdrop is helping, although the intra-day chart of USD/JPY versus the US 2yr yield suggests yen is still outperforming this weakness (albeit using a 3 day sample period).
- Japanese fiscal year end is March 31, the end of this week, so flows related to that could also be influencing yen spot moves. There isn't much movement in the vol or risk reversal space.
- Earlier the Japanese cabinet approved 2.2 trillion yen in reserve funds to combat inflation pressures. This was in line with what was mentioned previously.
Fig 1: USD/JPY Versus US 2yr Yield Intra Day
Source: MNI - Market News/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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