Risk aversion supports lower end of Dec Yen range - Scotiabank

FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted the conditions around the Yen and risk aversion supports lower end of range.

Key Quotes:

“JPY retraces some of yesterday’s strength as market reassesses risk aversion”.

“For the near‐term the USD/JPY base case is range trading between the December low and high of 115.57 to 121.85; with any spike in risk aversion driving a rapid test towards the lower end. Data today was limited (as it will be all week) while PM Abe put additional focus on wages, suggesting that any uptick here would suggest an end to deflation."