Some might tell you the latest craze in Japan is pancakes. Apparently, everyone’s heading to Harajuku for Australian chef Bill Granger’s ricotta hotcakes with honeycomb butter (and why wouldn’t you be?) or, failing that, 7-11. But the real craze at the moment is yen watching. It’s back!

You’re closely watching the yen. I’m closely watching the yen. Japanese government officials are “closely watching” the yen. We’re all “closely watching” the yen.

This morning, the Japanese currency is trading one-third of one per cent weaker at ¥100.64 per dollar, having gained 0.9 per cent on Tuesday.

Outside Asian trading hours yesterday, the yen strengthened to as much as ¥99.54 per dollar, which marked the first time through the ¥100 mark since June 24 and the aftermath of the UK’s decision to leave the EU.

That all prompted an official from the Japanese government to say yesterday it was “closely watching FX markets with a sense of urgency”.

An hour after the stock market open, Japan’s broad Topix and the Nikkei 225 are both 0.5 per cent higher. The gauges fell 1.4 per cent and 1.6 per cent, respectively, yesterday as the yen began to strengthen in the afternoon session.

The yield (which moves inversely to price) on benchmark 10-year Japanese government bonds was 0.3 basis points higher this morning at minus 0.082 per cent.

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