Japanese Yen Strength Continues Amidst Global Market Volatility

The Japanese Yen has seen ongoing strength in recent times, with USD/JPY volatility causing the pair to drop as low as 152.88 before stabilizing at around 153.26.

Mixed Japanese data, including stronger labour cash earnings and softer GDP, have not altered expectations for a 25 bps BOJ rate hike in September, keeping attention on BoJ communication and Yen-supportive policy signals.

According to MUFG's Michael Wan, the focus remains on the ongoing strength in the Japanese Yen, while also keeping an eye out on other global factors such as spikes in oil, the US Treasury’s buyback plans, coupled with importantly US CPI later this week.