Since October 21st, the Japanese currency experienced a major appreciation against the greenback: +10% as of December 2nd. Chief among the drivers behind this turnaround were the general shift in market expectations towards less aggressive Fed hikes combined to recent indications of Covid restrictions easing from China. However, these events could hardly be seen as sufficient to support a true yen pivot of their own, as least not without concrete signs that the Japanese central bank ought to change its trajectory and align with other countries in the global tightening cycle.

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