The yen remains weak, despite remaining in short-term oversold territory. After USD/JPY strengthened beyond 114.50 yesterday, it snapped back below 114. Today, the pair is again stronger and USD/JPY is currently trading above 114.20. Looking at news, the Nikkei 225 index is at its highest levels since 1992. Foreign investors continue to buy Japanese stocks, while economic growth in Japan has been relatively strong. Earlier this week, Bank of Japan Governor Kuroda signaled that easy monetary policies are set to continue as inflation remains low.
Looking at the euro vs. the yen, EUR/JPY is up slightly and is currently trading above 132.20.
Looking at the economic calendar for the yen, this week’s announcements include survey data, cross-border investment figures and a speech from the Bank of the Japan’s governor. On Monday, Governor Kuroda suggested that easy monetary policies will continue. Nikkei Services (53.4) and Composite PMIs (53.4) for October were both higher relative to previous figures. Earlier today, labor cash earnings beat expectations (0.9% vs. 0.5% expected) while real cash earnings disappointed (-1% vs. -0.2% expected). On Wednesday, we’ll see the leading index and the coincident index. Finally on Thursday, we’ll see the Eco Watchers Survey, Machine Orders, cross-border stock and bond investments and bank lending. Last week, retail sales missed expectations.