For China, the Yen Just Got Too Cheap

Yuan's (mis)managed plunge was about JPY, not USD.

◆ 3 days of strongest yuan fixings YTD, CNY still > 7.2

◆ Why PBOC loosened its grip on CNY: the yen

◆ Japan-China trade (im)balance

◆ CFETS & BIS currency baskets show: 🇨🇳CNY is actually holding up, but 🇯🇵JPY is getting decimated

◆ Market implications: CNH / JPY & US yields

◆ Long JPY (even as USDJPY breaks new highs) outlook