JPY vulnerable to near-term weakness - Scotiabank

Analysts at Scotiabank explained that JPY is up with a modest gain from Friday’s close, ignoring BoJ Gov. Kuroda’s dovish Jackson Hole comments and strengthening in tandem with its G4 peers.

Key Quotes:

"Near-term domestic risk is elevated as we look to this week’s employment, retail sales, and industrial production data.

The outlook for relative central bank policy appears dominant following the recent moderation in geopolitical risk and improvement in the broader market tone.

Short-term spreads have widened and JPY appears vulnerable to near-term weakness."