Analysts at Scotiabank explained that risk in JPY
continues to be dominated by the broader market tone, and we continue to highlight the widening disconnect between yield spreads ( shifting in a JPY-negative manner) and the remarkable stability in the currency.
Key Quotes:
We are also somewhat cautious as we also note JPY’s inability to weaken materially through the recent period of risk appetite. Options prices have shown a limited response to the turn in the market tone, with steady demand for protection against JPY gains across a range of time frames.”
continues to be dominated by the broader market tone, and we continue to highlight the widening disconnect between yield spreads ( shifting in a JPY-negative manner) and the remarkable stability in the currency.
(Market News Provided by FXstreet)