USD/JPY: sentiment driving Yen – Scotiabank

By FXStreet Analysts at Scotiabank explained that sentiment continues to dominate movement in JPY.

Key Quotes:

“We note a sizeable disconnect to levels implied by yield spreads and a tight correlation to risk reversals.”

“JPY showed no discernible response to comments from Gov. Kuroda, and the softer than expected preliminary PMI failed to generate a reaction.”

“USD/JPY is testing near term resistance around 113.40, a level that roughly coincides with the 200 hour MA and the 38.2% Fibo retracement of the Feb 11-16 rally.”
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Source:: FX Street