USD/JPY: bid ahead of key Japanese CPI's and Jackson Hole speeches

Analysts at Scotiabank explained that JPY is weak and underperforming all of the G10 currencies along with gold.

Key Quotes:

"The broader tone remains dominant and JPY is suffering in response to the shift back toward risk appetite. There are no major near-term risks ahead of the domestic CPI data (7:30pm ET) followed by Friday’s Jackson Hole speeches."

"JPY appears most vulnerable against EUR on the basis of extended bullish EUR/JPY positioning with risk of a swift decline from the mid-127 area down toward 125."