Footprints of the flows that drove price action in Japanese markets in May hint at what to expect in June: The MUFG Global Markets Podcast

The end of the April-June quarter is drawing near. Ten prefectures in Japan have been under a state of emergency and will be until June 20. USDJPY has risen, JPY basis has shrunk, and the long end of the JPY swap rates curve has come under downward pressure recently, while the front end has risen slightly. Japanese leading economic indicators have been improving, and the trade surplus grew in April as exports rose. Inflation, while still weak, is up slightly. Amidst the ongoing pandemic, fragility lurks in the real economy’s improvement as well as in price and financial transmission mechanisms.

In today’s episode, MUFG Chief Japan Strategist Takahiro Sekido discusses May JPY cross asset reviews as well as June JPY arbitrage trading triggers. He also shares his views for Dollar/Yen, Yen rate, and Yen basis.

Disclaimer: www.mufgresearch.com (PDF)