JPY recovers modestly in NA session as Japan resumes trade talks – Scotiabank

JPY Rebounds Slightly as Japan Focuses on Trade Talks Amid Stable Bond Markets

The Japanese Yen (JPY) edged a marginal 0.2% lower against the US Dollar (USD) entering Thursday's North American session, showing signs of recovery after early losses triggered by trade-related headlines. According to Scotiabank’s Chief FX Strategist Shaun Osborne, JPY remains one of the better-performing currencies among the G10 majors despite the slight decline.

Japan’s Trade Negotiations Enter Fourth Round

Japan's lead trade negotiator has arrived in Washington, D.C. for a fourth round of talks aimed at progressing trade discussions, even as a recent US federal court ruling declared previous tariffs unlawful. This development remains the primary focus for market participants closely watching how the negotiations unfold.

Stability Returns to Japan’s Bond Market

Japan’s government bond markets have settled, showing stable spread levels, which could allow local economic factors to play a larger role in influencing near-term JPY price action. Market watchers anticipate important data releases this week, including:

• Employment figures
• Tokyo Consumer Price Index (CPI)
• Industrial production
• Retail sales

These indicators will be critical in shaping investor sentiment and potential shifts in Bank of Japan (BoJ) policy expectations.