Yen falling for second session - Scotabank

Analysts at Scotiabank noted that JPY is weak and falling for a second consecutive session.

Key Quotes:

"It begins to retrace a portion of its recent rally."

"Sentiment and positioning have been the primary drivers of JPY strength on a year-to-date basis, pushing CFTC longs to fresh record highs and leaving investors vulnerable to the risk of a turn."

"The improvement in China’s growth prospects should alleviate some of the Fed’s concerns and help to temper its caution, providing for a reaffirmation of central bank policy divergence vs. the BoJ. We see rising downside risk for JPY."