JPY is outperforming on broader market tone – Scotiabank

The Japanese Yen (JPY) is strong, up 0.5% against the US Dollar (USD) and outperforming all of the G10 currencies in an environment broad-based USD strength and risk aversion, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JPY reaffirms haven status

"The dominance of sentiment is important, reaffirming the yen’s role as a safe haven currencies—a characteristic with which it has been struggling through recent periods of domestic political turmoil."

"USD/JPY’s technicals are mixed, with modest bullishness in momentum indicators like the RSI and a textbook bearish outside reversal on the candle charts. We are neutral looking to a near-term range bound between 153 and 154."