Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that they continue to highlight USDJPY’s considerable vulnerability to shifting sentiment.
Key Quotes:
“…and the potential for a violent unwind of the positioning that has been built on a YTD basis.
Domestic developments appear to have been disregarded by market participants, with no discernible reaction to the release of weaker retail sales.
Fiscal issues remain in focus following the passage of the most recent budget with rumors of a delay to the April 2017 consumption tax hike and fresh talk of supplementary stimulus.
Official comments from PM Abe have pushed back on both.”
(Market News Provided by FXstreet)