USD/JPY: remains vulnerable to risk aversion - Scotiabank

For USD/JPY, analysts at Scotiabank note risks in times of risk aversion.

Key Quotes:

"The 2Y U.S.-Japan yield spread pushes fresh post-crisis highs and risk reversals fade the premium for protection against JPY strength."

"The broader market tone appears sanguine however it remains a key vulnerability for JPY as we note the potential for knee-jerk havendriven gains in periods of risk aversion."