Early in Asia trade USD/JPY popped through the round number it had been threatening to highs circa 124.20. The move was triggered by some short covering but has not been sustained. USD/JPY has slid back 50 or so points to around 123.70 and as I post is ticking back towards 123.90.

From Japan today we had further reports the country is moving towards limiting energy imports from Russia. The Japanese government says it’ll be moving to limit coal imports from Russia but will do so in a gradual fashion as it sources alternative supply. Japan is one of the world’s largest importers of energy; coal, gas, oil and more.

Japan’s Prime Minister Kishida will be holding a news conference at 0900 GMT. I haven’t a specific topic or topics he will be speaking on. I suspect further moves on sanctions on Russia will feature.

Major FX elsewhere has been subdued. EUR/USD is a few points lower (EUR/JPY notably slipping with the combined moves).

From Australia we had the Reserve Bank of Australia issue its latest Financial Stability Report. Nothing in this did anything to change the view of interest rate hikes ahead from the Bank.

Shanghai’s lockdown continues and case numbers mounted further again today.

usdyen 08 April 2022 22