🧭 Market Notes for Today: Yen weakness continues, but caution is needed near the highs

🧭 Market Notes for Today:

Yen weakness continues, but caution is needed near the highs

The week begins with a mild risk-on tone across markets.
USD/JPY is gradually climbing from the high-153s toward the 154 handle, and cross-yen pairs are also trading firm.

Supportive factors for the market:

• Progress in U.S. budget negotiations → Government shutdown concerns eased slightly

• China temporarily suspended export restrictions on rare metals → Tensions in U.S.–China relations eased for now

However, the ongoing U.S. government shutdown has delayed major economic data releases.
→ With less information available, the market becomes more headline-sensitive and prone to sudden moves.

🎯 Key Focus Tonight: News flow & Central Bank Speakers

Since there are no major economic releases today, price action will likely be driven by:

Speakers Scheduled:

• BOE Deputy Governor Lombardelli

• Fed SF President Daly

• Fed St. Louis President Musalem

→ Depending on their tone, USD/JPY may see increased intraday volatility.

🇯🇵 Domestic Context: “Policy stance still favors a weaker yen”

Comment from Government Economic Advisor Aita:

“The BOJ should not rush. Policy normalization should be gradual.”

→ This reduces pressure for rate hikes
→ Keeps Japan–U.S. rate differentials wide
→ Reinforces a structurally yen-bearish environment

💱 Current Market Feel