Yen soft on risk appetite – Scotiabank

By FXStreet Eric Theoret, CFA, CMT FX Strategist at Scotiabank bank explained that the JPY is soft and underperforming all of the G10 currencies in an environment of modest risk appetite.

Tokyo all spent-out: USD/JPY limited support until 105.00

Key Quotes:

“JPY remains extremely vulnerable to the broader tone, and risk is elevated as we look to the release of the IMF’s World Economic Outlook global forecast update (9:00am EST).”

“A deterioration in broader market sentiment could easily push JPY above Monday’s multi-year high and exacerbate officials’ ongoing frustration with the level of the currency.”

“Officials have delivered a near-constant stream of aggressive fx-focused rhetoric in an attempt to stem JPY gains.”

“Finance Minister Aso’s most recent comments echoed the tone from Chief Cabinet Secretary Suga with ‘vigilance’ and sensitivity to ‘one-sided’ movement in the yen.”
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Source:: FX Street