Yen Gets Support from Upbeat Economic Report

Japanese yen is seeing some strength today, thanks in large part to an upbeat economic report. Also helping the yen is a bit of a departure from the earlier risk-on sentiment of the market.

Yen is higher against some of its major counterparts right, thanks in large part to statements from government officials and a recent economic assessment.
Recently, the Chief Cabinet Secretary in Japan, Yoshihide Suga, said that the government isn’t planning to inject additional stimulus anytime soon. This news indicates that the government won’t actively weaken the yen for the time being, and that is providing a bit of enthusiasm for a higher yen.
On top of that, the Sakura report, a quarterly release from the Bank of Japan, indicates that the country’s nine regional economies are seeing improved performance. This result further supports the idea that more stimulus might not be needed soon, and that is helping the yen.
The yen was seeing some capping from the rally in European stocks, with risk sentiment on the rise. However, with the US session opening lower, some of that risk appetite is fading.
At 14:28 GMT USD/JPY is down to 119.3880 from the open at 119.3900. EUR/JPY is down to 135.2400 from the open at 135.6300. GBP/JPY is higher, though, gaining to 184.8680 from the open at 184.3850.

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