Eyes will be on the yen yet again today in Asia.

Adam had a great update here on an analyst note:


This now from JP Morgan comes via eFX.

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  • "Household/corporate FX deposits at Japan banks are rising sharply. This could catalyze further JPY depreciation over the medium term. FX deposits usually follow the yen's trajectory: households tend to buy foreign currency when the yen is strong, and sell when it is weak. But there has been a somewhat unusual decoupling in this trend over the past couple of months, with FX deposit growth soaring to cycle highs even as the JPY NEER has tracked multi-year lows," JPM notes.
  • "We do not think this suggests a wholesale loss in confidence in the currency. But to the degree that foreign currency deposit growth continues to rise, this suggests an additional idiosyncratic headwind for the yen," JPM adds.
usdyen 16 September 2022