USD/JPY: Yen is outperforming on risk aversion - Scotiabank

Analysts at Scotiabank explained that JPY is outperforming, rising in an environment of risk aversion to test a fresh one month high (USDJPY low).

Key Quotes:

"The gains are all the more impressive in that they have been observed in the face of far weaker domestic machine orders data and exceptionally dovish commentary from BoJ board member Nakaso, thus highlighting the dominance of broader market sentiment in driving JPY. Measures of sentiment suggest a rise in demand for protection against JPY strength and the current tone leaves JPY risk balanced to the upside."