Yen remains better bid, but for how long? - Scotiabank

Analysts at Scotiabank explained that JPY is up from Monday’s close in the context of a remarkably conflicted market tone.

Key Quotes:

"Fundamentals and sentiment are shifting in a JPY-negative manner, as we note the impressive near-10bpt widening in the U.S.-Japan 2Y yield spread over the past several sessions as well as the continued shift in risk reversals suggesting an ongoing moderation in the premium for protection against JPY strength."

"Near-term risk lies with the broader tone in the absence of any significant domestic data releases scheduled for this week."