Balance of risk appears to favor near-term JPY strength - Scotiabank

Analysts at Scotiabank explained that JPY is up modestly from Friday’s close, a mid-performer among the G10. 

Key Quotes:

"The broader tone remains crucial for JPY as market participants remain attentive to ongoing geopolitical risk."

"There are no major releases ahead of Friday’s (late Thursday EST) domestic CPI. Spreads are quiet around the narrow end of their recent range and risk reversals are suggestive of a slight build in the premium for protection against JPY strength."

"The balance of risk appears to favor near-term JPY strength."