Yen bulls taking a battering - Scotiabank

Analysts at Scotiabank noted that the JPY is weak, down from Monday’s close.

Key Quotes:

"The broader tone is dominant and the moderation in risk aversion is pressuring JPY. Interest rate differentials are widening and measures of implied JPY volatility are softening."

"Risk reversals have almost fully faded last week’s move with a clear decline in the premium for protection against JPY strength. The near-term balance of risk appears to favor further downside in JPY."