Moscow is not New York

JPY accelerates weakness as the G20 agrees to leave off Japan from the official communiqué. Dont expect the Moscow G20 to be like the G7 Plaza Accord of 1985. At the end of the day, no four or five sentences issued by the G7 or G20 will undo the sea change in Japan's monetary policy, which was brought about by electing LDP back to power.  Also recognize that the G7 tacitly favours a weak yen as it is part and parcel of stabilizing the global economy via Japanese institutional investors' chasing yield abroad (in both G7 & G20 markets)

JPY Weakness is here to Stay

The last time the G7 proved to be a game-changer in currencies was at the G7 meeting in Dubai in September 2003 when both Japan & China were targeted for artificially capping their currencies. After the meeting in Sep 22 2003, the yen soared, driving down USDJPY by 13% from Sep 2003 to Dec 2004. That happened because USDJPY was originally as high as 120 (25% weaker than today). 

Yesterday's Premium Insights on USDJPY and EURJY are all in progress. Gold, oil and silver will be updated shortly.