FXStreet (Guatemala) – Analysts at Scotiabank noted that JPY is flat, consolidating around its 200 day MA, constrained by pressure from fundamentals and relative central bank policy, offset by support from the broader tone of risk aversion.
Key Quotes:
“We note the lack of a specific response to the release of PMI’s (both domestic and China’s official/Caixin private sector measure).
Fundamentals are bearish for JPY, as we consider the renewed divergence in relative central bank policy following Friday’s surprise BoJ shift to negative rates.
With regards to sentiment, we note that JPY is vulnerable to positioning with Friday’s CFTC data detailing a net long JPY position of $5.3bn (as of January 26—pre-BoJ), its most bullish since early 2012.”
(Market News Provided by FXstreet)