The JPY continues to trade in a wide range against the US dollar, suggesting a balancing act between two dominant safe-havens. Against other currencies, however, the Japanese yen appears to be losing some ground. The EUR/JPY moved back above 109.00 today before descending mildly to a current price near 108.80. The GBP/JPY saw similar movements, with a current price of 130.85.
The persistent strength of the yen has pushed Japanese exports lower, driving machine orders down 3.0% over the past month. Japanese consumer sentiment appears to be rising, likely due to the new buying power of Japanese consumers, but this may be tempered with a decline in bank lending and a coinciding reduction in the money supply, which will likely only drive JPY values higher in the long-run, further harming Japanese exports.