USD/JPY: Sentiment remains bearish - Scotiabank

FXStreet (Guatemala) - Analysts at Scotiabank explained that during February, USD/JPY continued to trade within its three month range.

Key Quotes:

"The passing of broader market concerns has allowed for a shift back toward fundamentals, which suggest ongoing yen depreciation."

"Sentiment, remains bearish, but has eased since December. The CFTC has reported consecutive weeks of narrowing gross short positions, while consensus has held a stable 125 year-end target in USD/JPY since December."

"We expect that with risk aversion easing USD/JPY will shift back to trading on its currency negative fundamentals and accordingly hold a year-end target of 125."