US Sec. of State Blinken: US and Japan to launch new defense research and development agreement


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“The United States and Japan will sign a new research and development agreement to make it easier to collaborate on countering new defense threats, including hypersonics and space-based capabilities,” said US Secretary of State Antony Blinken on Thursday per Reuters.

“Blinken also told the opening of a virtual meeting between the foreign and defense ministers of Japan and the United States that they would sign a new five-year agreement covering the continued basing of U.S. troops in Japan that would invest greater resources to deepen military readiness and interoperability,” adds the news.

FX implications

The news should ideally help USD/JPY while being a risk-positive headline. However, cautious sentiment ahead of the US Nonfarm Payrolls (NFP) and steady yields weigh on the yen pair around 115.85 during early Friday morning in Asia.

Read: USD: Why a strong Nonfarm Payrolls may not be enough?

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