With hopes for easing of US-China trade frictions, the dollar/yen rebounded to around the mid-152 yen level.

【10/13Market Overview

Tokyo time, USD/JPY opened higher in the Asia-Pacific market on the back of a rebound after its sharp drop at the end of last week, and began with a gap up. Subsequently, President Trump posted on SNS that “America wants to help China, not hurt it!” which slightly softened the stance toward China, causing the NY Dow futures to surge and the dollar/yen to be bought back to the152.28152.28yen level. However, with the Komeito withdrawal causing a retreat in the Takai trade, the upside was limited and it briefly dipped below the152yen. Thereafter, with the Tokyo market closed, USD/JPY moved little in the upper-150s. In European time, USD/JPY paused from fears of renewed U.S.-China trade frictions and the rebound buying led the move. In the NY session, with the Dow Jones index surging, USD/JPY rose to152.45152.45yen. It should be noted that U.S. Treasury Secretary Yellen stated that “the U.S.-China summit is expected to proceed as scheduled,” and that “China’s government announced export restrictions on rare earths on the 9th, worsening relations, but subsequent dialogue resumed and greatly eased the tension.”

【10/14Market View