The Japanese stock market has been tanking since May 22.
In the past few days, losses have slowed a bit – Friday, it closed down only 0.2%.
However, we witnessed a big unwind in the long U.S. dollar/short Japanese yen trade yesterday, with the currency pair falling below ¥95.54 overnight from levels around ¥99.46 just a day before.
Following the release of today's jobs report in the U.S. – which came in better than expected – the dollar initially tanked against the yen, making a new low of ¥94.98.
However, the losses were short-lived, and the dollar is now trading around ¥96.85 to the yen versus levels around ¥95.66 just prior to the release.
Meanwhile, Nikkei futures are spiking and are now up 0.3% from the previous close after being down prior to the report.
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