USD/JPY: a continued unwinding of JPY’s Q1 haven-driven rally - Scotiabank

Analysts at Scotiabank explained that JPY is soft and underperforming all of the G10 currencies with the exception of NZD, extending its bear run to fresh lows at levels last seen in mid-February. 

Key Quotes:

"Yield spreads are widening to fresh 10 year highs, and risk reversals suggest a continued erosion in the premium for protection against JPY strength."

"Domestic developments have been limited, and geopolitical developments are allowing for a continued unwinding of JPY’s Q1 haven-driven rally."

"Both USDJPY and EURJPY remain well supported, and technical indicators are suggestive of an acceleration in momentum."