USD/JPY: JPY is showing impressive resilience - Scotiabank

Analysts at Scotiabank noted that USD/JPY is consolidating within a remarkably tight range just above Friday’s two month low.

Key Quotes:

"Domestic developments have been limited and PM Abe is meeting President Trump in Florida."

"JPY is showing impressive resilience in the face of widening interest rate differentials and fading geopolitical concerns."

"Risk reversals suggest a continued erosion in the premium for protection against JPY strength vs. both the USD and EUR."