The yen has continued to strengthen in European trading, pushing USD/JPY to a five-month low and adding to the risk-off vibe spreading through markets. Apart from Japanese equity losses and the potential for a BOJ shakeup, another thing to keep in mind is the end of the Japanese fiscal year on March 31 -- the run-up to this period usually sees companies repatriate earnings from overseas back to JPY, which can lend the currency some seasonal support.The yen's bullish momentum is also showing up in one-month risk reversals, which show an increase in positions that'd benefit from further strength:
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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