Caution, Yen not weakening materially – Scotiabank

By FXStreet Analysts at Scotiabank explained that risk in JPY
continues to be dominated by the broader market tone, and we continue to highlight the widening disconnect between yield spreads ( shifting in a JPY-negative manner) and the remarkable stability in the currency.

Key Quotes:

We are also somewhat cautious as we also note JPY’s inability to weaken materially through the recent period of risk appetite. Options prices have shown a limited response to the turn in the market tone, with steady demand for protection against JPY gains across a range of time frames.”
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Source:: FX Street