Just a summary of where we are at for the yen, my thoughts and those doing the rounds:

Risk sentiment has improved

On North Korea

  • some improvement, a lowering level of tensions
  • Relief reflected in yen drop (and CHF to a smaller extent)
  • But, these will likely resurface, at least to some extent as wariness and questions surface

Tariffs

  • plans are known including those exempt
  • but other countries will take retaliatory action

But, as is always the case in markets - this is not over (it never is).

Topside for USD/JPY should be a limited from here

  • levels are difficult in this environment
  • 108 seems out of the question today, but that's another hundred points away so saying this may not even have much relevance to risk managers
  • 107 is close, shaping up as the next level for resistance (and a touch below the figure)

Bank of Japan still to come, statement and the presser (likely to be of more interest)