FX Action: USD-JPY has broken above recent range highs
FX Action: USD-JPY has broken above recent range highs and printed a seven-week high at 111.14. EUR-JPY and other yen crosses are also up, with EUR-JPY trading in seven-week high terrain and AUD-JPY making one-month highs. The driver of the yen's underperformance is the continued rebound in global stock markets, although Chinese shares continue to underperform. The solid U.S. jobs report last Friday and expectations for a strong corporate earnings season have been buoying equities, and while the shift toward trade protectionism remains at the top of the worry list of investors, the level of implemented tariffs so far is small in the scheme of things. BoJ Governor Kuroda yesterday repeated that the central bank will remain committed to ultra-accommodative monetary policy, including yield-curve control, until inflation hits the 2% target.