The yen is the top performer so far in Asian trading as it undoes some of yesterday’s damage. She was mostly talking about rising yields but effectively, it’s two sides of the same coin.
Looking at the chart, we have made a big round trip this year and are almost back at the 158 high from January. The Bank of Japan is also increasingly likely to hike next week and that should weigh on the yen, particularly with the Fed set to cut rates today.
All that indicates we’re more likely to see some consolidation below the recent highs along with some short-term back-and-fill to 156.00
USD/JPY gives back some of Tuesday’s gains after Takaichi’s comments
