Yen: weaker on risk appetite, watching Fed and BoJ - Scotiabank

JPY is soft and underperforming along with gold in an environment of risk appetite. 

Key Quotes:

"The dominance of the broader tone is impressive, leaving JPY vulnerable to violent haven-driven gains in periods of risk aversion and modest, steady weakness in periods of risk appetite."

"This short-lived reprieve in sentiment has done little to reverse much of the recent shift in risk reversals, still pricing in a sizeable premium for protection against JPY strength—around levels last seen in the crisis environment from mid-February.

JPY is highly vulnerable heading into Wednesday’s Fed events with added risk from the BoJ policy decision that is set to follow early in Thursday’s Asian session."