Yen comes with mixed sentiment fundamentally - Scotiabank
|Analysts at Scotiabank explained that fundamental releases have been limited for the Yen, with near-term risk centered on industrial production and retail sales figures ahead of Friday’s CPI.
Key Quotes:
"The 2Y U.S.-Japan yield spread remains elevated below the multi-year high from mid-February.
Measures of sentiment are mixed with shorter time horizons pricing a modest premium for protection against JPY strength.
Longer tenors capturing French election risk are pricing a greater premium, at levels last seen around the U.S. election from November.
JPY’s risk profile leaves it vulnerable to swings in the broader market tone with knee-jerk, havendriven gains in periods of risk aversion."
"Signals are neutral across both trend and momentum indicators, however the chart is suggestive of further downside with the formation of a descending triangle from the December 2016 high.
There are no significant support levels ahead of the 200 day MA."
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