USD/JPY: keeping an eye on the broader tone - Scotiabank

Analysts at Scotiabank explained that JPY is weak vs the USD and a mid-performer among the G10 with a modest retreat from its recent multimonth highs. 

Key Quotes:

"The broader tone remains crucial for JPY and yield spreads remain narrow at the lower end of their recent range."

"We continue to highlight JPY’s vulnerability to knee-jerk haven-driven gains and note the added risk posed by extended short JPY speculative positioning."