Analysts at Scotiabank explained that the JPY is up vs. the USD and outperforming all of the G10 currencies in an environment of broad-based risk aversion, extending its recent bullish turn and testing a fresh one month high.
Key Quotes:
“Yield spreads are narrowing in a JPY-supportive manner and risk reversals are suggestive of a continued rise in the premium for protection against JPY strength vs. both the USD and EUR.
EURJPY remains weak, nearing fresh one year lows around 125.”
“Domestic developments have been limited, however Gov. Kuroda is scheduled to speak at 8pm ET and retail sales are released at 7:50pm ET.”
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