The trend in the forex market to start the week is yen weakness. It's universally soft and the trend is accelerating from AUD/USD up 68 pips to CHF/JPY up 34.
Today's news from Japan likely wasn't a factor but it's notable that rising covid cases and still-low inflation cement the yen's status as a funder. The strong, positive finish in US equities Friday was also a factor and US futures are now slightly higher after starting on the soft side. Keep in mind that much of Asia is on holiday today so signals could be skewed.
I tend to think there's no need to overthink this trend. USD/JPY has been steadily rising since the Fed along with rates. Bostic was talking about 50 bps on the weekend and the risk trade has some life. There might be more torque elsewhere but there's value in simplicity.
