This is an older news update for the Japanese yen. Click here to view the latest daily update.

Japanese yen daily update for 22nd December 2017

BY DEB SHAW | 

The Japanese yen strengthened yesterday and is trading sideways this morning. After peaking just above 2.50%, US 10-year government bond yields have been falling. Looking at other government bond yields (including Germany and the UK), falling interest rates looks like a global phenomenon and this is driving recent yen strength. Thanks to the Bank of Japan's yield curve control program, 10-year Japanese government bond yields are fixed at 0%. This makes the yen especially sensitive to interest rate differentials. Our short-term and medium-term outlook remains bearish. 

USD/JPY is currently trading just above 113.30. Looking at the euro versus the yen, EUR/JPY is down and is currently trading above 134.40. 

This is a fairly important week for economic data and events relating to the yen. Japanese trade balances were better than expected (+¥113.4b vs. -¥54.9b expected). Cross-border stock (-¥622.5b) and bond investments (+¥51.0B) show that capital outflows continue. The Bank of Japan meeting was mostly a non-event, with Governor Kuroda suggesting no change in future monetary policy. Last week, the Tankan survey showed that Japanese businesses remain optimistic.

Updated 
Outlook
Bearish

Subscribe to the MarketsNow Japanese yen daily update