FX Action: The yen has nudged lower
FX Action: The yen has nudged lower against the dollar and euro, tracking a rise in U.S. Treasury and Bund yields, which has been accompanied by gains in Asian and European stock markets to complete the risk-back-on picture. USD-JPY has printed a two-session high at 106.66, returning last week's two-week peak at 106.97 back into scope. EUR-JPY has also lifted into two-session terrain, though GBP-JPY and AUD-JPY have fared less well, with the pound and Australian dollar trading generally softer. The Japanese currency saw bouts of high volatility last week, and will remain prone to directional impulsiveness should there be continued flip-flopping between risk-off and risk-back-on sentiment, which seems likely as hopes for more central bank stimulus vie with fears that a number of major economies are simultaneously heading for recession.