FXStreet — The Scotiabank analysts explain that the JPY gained against the USD by 1.8%, and currencies in the strongest Performance of the G10 together with Gold hands.
«The disappointing domestic machinery orders were ignored and the broad market sentiment dominated on Wednesday that the American session.»
«The implied volatility of the JPY has risen, and the risk reversal speaks for a growing hedge against a JPY strength. The decline in US Treasury yields provides an additional justification for the JPY strength, on the Basis of a reduction in the interest rate differential.»
«The short-term balance of risk seems to speak for JPY gains.»
** FXStreet News Editorial, FXStreet**