USD/JPY was rising overnight from 106.40 to 107.23 which was a one-month high with a bounce in US stocks and a recovery in US data, a welcome surprise following the disappointment in the IS ISM manufacturing data. In Tokyo, USD/JPY has been offered as the pair consolidates ahead of the key showdown tonight in the US session.
The risk environment has improved since the Hong Kong news and trade talk headlines that surfaced yesterday at around this time, with a meeting in the card tween US and Sino negotiators early October. The Brexit can also seems as though it is being kicked down the road again, giving relief to GBP and subsequently weighing on the Yen.
Source: Reuters