TOPIC:

The focus is very much on troubled Chinese property development giant Evergrande.
Its equities in HK are down more than 10% and the weakness is spreading across the property and insurance sectors.

Currenccies ... the offshore yuan is weaker while beneficiaries are the US dollar and yen.

AUD is leading the field lower for the major traded pairs, EUR, GBP, NZD CAD all succumbining to a lesser extent.

USD/JPY is the forex ticker that shows the value of the US Dollar against the Japanese Yen. It tells traders how many Yen are needed to buy a US Dollar. The Dollar-Yen is one of the most traded forex pairs – second only to EUR/USD – and is a benchmark for Asian economic health and even the global economy. View the live Dollar-Yen rate with the USD/JPY chart and improve your technical and fundamental analysis with the latest USD/JPY forecast, news and analysis.

JAPANESE YEN FUNDAMENTAL FORECAST: BULLISH
Japanese Yen gains against most FX peers as risk aversion rises
Bank of Japan, CPI data in focus this week along with risk trends
Safe-haven flows likely to be main driver for JPY pairs next week

The safe-haven Japanese Yen benefited against most of its peers last week as a bout of risk aversion rippled through financial markets. Risk-sensitive currencies performed poorly, with the Australian Dollar losing nearly a full percentage point against JPY. The US Dollar fared much better being a haven currency itself, with USD/JPY nearly unchanged last week. Overall, however, the Yen has benefited over the last couple of weeks as surging Covid cases pushed growth slowdown fears.

Still, the Yen has yet to recover a substantial portion of its earlier year losses when analysts and economists were solidly optimistic about a strong economic recovery. Those upbeat economic forecasts put a hit on the safe-haven currency, displayed in the exchange rates below. The Delta strain's emergence over the summer months saw Yen strength move back into the fold, with the move being most notable in AUD/JPY. That’s no surprise, given the wave of lockdowns in Australia over the summer.