USD/JPY: 120.00 to break? - Scotiabank

FXStreet (Guatemala) - Eric Theoret, CFA, CMT FX Strategist noted the conditions surrounding USD/JPY in these holiday markets.

Key Quotes:

"Yen appears vulnerable to haven-driven gains in an environment of elevated uncertainty, as we note its divergence from fundamental drivers (relative policy & 2Y yield spread) and look to the steady demand for protection against gains (USD/JPY downside) as risk reversals drop to fresh two-week lows."

"Near term risk lies with the broader tone and the potential for a break in USD/JPY below 120.00."