USD/YEN Update – 18/04/2017 (10:42am) – by Arjun Lakhanpal

USD/YEN Update – 18/04/2017 ( 10:42am): Geopolitical risks remain the broader driver of USDJPY. With China and Russia attempting to defuse rising tensions between the US and North Korea over the weekend and no immediate war, pressure has alleviated a little and having traded a low of 108.14 driven also by a miss in US CPI Friday, the pair has bounced back to 109.22. Mnuchin comments in an  FT interview on the USD has also helped although I think more important was his view that tax reform was a way off. I think the risk reward remains on the downside while 110.20 holds.