Yen should feel pressures ahead from Fed - Scotiabank

Analysts at Scotiabank explained that the Fed’s cautious movement toward normalization should weigh on JPY over the medium term.

Key Quotes:

"...given the reaffirmation of policy divergence and the impact the Fed’s caution in terms of providing support to risk appetite."

"Measures of implied JPY volatility have fallen to their lowest levels since early February, and options prices suggest a moderation in demand for protection against upside JPY risk across a range of short, medium and long-term horizons."