Friday session saw Japanese equities rise to the highest since August 1990, the Nikkei 225 Index is now tracking an 18.4% YTD return. This compares to a 10.1% rise in the S&P 500 Index, the EuroStoxx50 and the FTSE 100 carry 17.8% and 5.7% YTD returns, respectively
USD/JPY has moved in the same direction as Japanese equities, the spot traded at fresh YTD highs on Thursday. The 25-day correlation coefficient between the Nikkei and the dollar-yen is now at 65%, the coefficient was slightly negative back in mid-March
While the relationship between USD/JPY and rates remains significant, this has weakened over the last couple of months.
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