China Targets Japan in Export Controls, Bolstering JPY Risk Premium
BNY notes that China's expanded export control list including Japanese entities raises supply chain risks for defense and rare earths, while strong Japanese commercial sales support the yen's risk premium.
USDJPY
China has expanded its export control list to include additional Japanese entities, heightening supply chain risks for the defense and rare earths sectors, according to BNY's Geoff Yu.
Meanwhile, Japanese commercial sales showed strong growth, which together with the geopolitical tension supports the Japanese yen's risk premium, Yu noted.
Source: FXStreet Forex News