USD/JPY: recoveries shallow in bearish climate - Scotiabank

Analysts at Scotiabank explained that JPY is up and outperforming in an environment of elevated risk aversion, strengthening to a fresh one month high and was nearing a break of its May 3 multi-year high (USD/JPY low at 105.55) at the start of the US sessison.

Key Quotes:

"Sentiment remains dominant in the current environment. 

Intervention remains a looming risk, however market conditions have yet to deteriorate to the extent (‘excessive volatility and disorderly movements’) that Japan’s G7 peers would find intervention acceptable."