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Yen Underperforms, Japan Markets Return, BoJ Mins From March On Tap

JPY

The yen was the second worst performer within the G10 space through Friday's session. It lost 0.38% against the USD (only CHF performed worst -0.58%). USD/JPY spiked above 135.00 post the better than expected US payrolls print during US trade, before pulling back below this level.

  • Higher US yields kept us close to 135.00 towards the Friday close and we currently track in the 134.80/90 region in the first part of dealing today.
  • Lows from last week came on Thursday near 133.50, while on Friday, dips sub 134.00 were supported.
  • Other cross asset headwinds were evident in terms of a better equity trends in US and EU markets, while oil prices also recovered further through Friday (Brent back above $75/bbl). This weighed on yen cross performance. AUD/JPY is back above 91.00.
  • Note Japan markets return today after last week's 3 day break (Wed-Fri). On the data front we have the final Apr services and composite PMI readings. The BoJ minutes are also due out from the Mar meeting.

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