It’s the first day of the new Japanese fiscal year. As we approached the end of the previous fiscal year (around the end of March, this week only), the repatriation of the yen to Japan was part of the ceiling of USD/JPY. After highs of just over 125 at the start of the week, USD/JPY is trading lower. These repatriation flows have, of course, come to an end as the past year has passed. Japanese exporters remain natural sellers of USD/JPY but additional selling flows have dried up. For today, that meant higher USD/JPY. Japanese importers, if they hadn’t already bought, were on the bid and pushed USD/JPY higher.
As of this writing, USD/JPY is making session highs almost a big number off the morning lows.
(That makes me a liar…that’s 100 points now that I’m sticking the board)
The new month brought a flood of data; PMI and Bank of Japan Q1 Tankan among them.
The news flow was only light.
Away from the yen, we had few notable moves. USD/CHF is a bit higher on the session. EUR/USD is hardly changed. Cable, AUD/USD and NZD/USD, too, little net change.
Oil barely moved away from its lows overnight.