USD/JPY: watch for a risk reversal for more downside - Scotiabank

FXStreet (Guatemala) - Analysts at Scotiabank explained that the Yen is softer and its weakness is driven by the broader market tone of risk appetite.

Key Quotes:

"Sentiment has been the primary driver for JPY in 2016, and this week’s relatively limited domestic data release schedule will maintain the focus on broader developments."

"Sentiment is bullish for JPY, as risk reversals suggest considerable demand for protection against JPY strength. We also note Friday’s CFTC data detailing a remarkably bullish JPY position—the $2.7bn long its greatest since late 2012."