EUR/JPY below 200- D SMA first time since April 2017 - Scotiabank

Early Asian session gains in the yen appear to have been driven by a drop in the BoJ’s long-end JGB purchases, explained analysts at Scotiabank, adding that the broader developments remain dominant as JPY strengthens on the back of safe-haven flows in an environment of broad-based risk aversion.

Key Quotes:

"Critically, EUR/JPY has extended its decline through the 200 day MA for the first time since the French election in April 2017. 

Risk reversals are showing signs of a turn, following their recent fade, hinting to a renewed rise in the premium for protection against JPY strength—vs. both the USD and EUR. 

Domestic developments have been completely overwhelmed by the broader tone, with a remarkably muted and short-lived reaction to unexpectedly weak retail sales and industrial production."