There were few economic offerings from Japan’s economic docket this morning. The only noteworthy indicator to cross the wires was the small business confidence survey for the month of May.
And, while the report’s more than five-year low stirred fundamental concerns over the health of the economy’s surprisingly strong pace of expansion; it would ultimately have little impact on the Japanese yen. Instead, a broad rebound in risk appetite and the carry trade would have its way with the yen crosses. An early morning drop in crude prices and jump in bond yields drove both GBP/JPY and AUD/JPY to significant technical breakouts and EUR/JPY and USD/JPY to test major resistance.
