USD/JPY: bullish on fundamentals - Scotiabank

FXStreet (Guatemala) - Analysts at Scotiabank explained that JPY is quiet, having traded within a remarkably tight range since the December 24 close.

Key Quotes:

"Fundamentals are bearish (USD/JPY bullish) as we consider the continued widening in 2Y yield spreads, trading above 110bpts to levels last seen in 2008.

Meanwhile, options prices suggest a continued rise in demand for protection against JPY gains (USD/JPY downside).

The tentative nature of the broader market tone is one in which JPY remains vulnerable to short-lived, haven-driven gains."