Yen Outperforms, But USD/JPY Maintains Recent Ranges

Yen was the best performer against the USD through Friday's session at the margins. We were 0.25% stronger, which left USD/JPY sub 130.00 to finish the week and we currently track around the 129.75 level, slightly lower since the open. This leaves us comfortably within recent ranges, with last week's range a rough 129.00/131.00.

• There is no domestic data today on tap.
• China is reportedly resuming visa issuance for Japanese nationals, after curbs were put in place in response to Japanese travel restrictions on China arrivals due to the Covid outbreak.
• The other focus point could be China's reaction to Japan, the US and Netherlands reaching agreement on chip export controls to China. Talks concluded between the 3 nations on Friday in Washington.
• In the option space, 1 month implied vols sit slightly above YTD lows, last around 12.95%, while the 1 month risk reversal is at -1.00, not too far off highs for the year.