USD/JPY: bid on dollar strength - Scotiabank

Analysts at Scotiabank noted that JPY is weak vs the USD while still outperforming all of the remaining G10 currencies in an environment of risk aversion and broad-based USD strength. 

Key Quotes:

"Yield spreads remain relatively unchanged however measures of sentiment appear to have turned."

"Risk reversals are showing a rise in the premium for protection against JPY strength vs. both the USD and EUR, and EUR/JPY appears vulnerable following last week’s key reversal."