Just a summary of where we are at for the yen, my thoughts and those doing the rounds:
Risk sentiment has improved
On North Korea
- some improvement, a lowering level of tensions
- Relief reflected in yen drop (and CHF to a smaller extent)
- But, these will likely resurface, at least to some extent as wariness and questions surface
Tariffs
- plans are known including those exempt
- but other countries will take retaliatory action
But, as is always the case in markets - this is not over (it never is).
Topside for USD/JPY should be a limited from here
- levels are difficult in this environment
- 108 seems out of the question today, but that's another hundred points away so saying this may not even have much relevance to risk managers
- 107 is close, shaping up as the next level for resistance (and a touch below the figure)
Bank of Japan still to come, statement and the presser (likely to be of more interest)
