Yen outperforming in mild risk-off - Scotiabank

Analysts at Scotiabank noted that the Yen is outperforming all of the G10 currencies on the back of haven-driven gains in an environment of mild risk aversion.

Key Quotes:

"Sentiment is dominant, with JPY largely ignoring the release of softer than expected retail sales data. Near-term risk lies with the BoJ policy decision following Monday’s NA close, and market participants are likely to focus on the statement tone and any fresh commentary on the ‘yield curve control’ policy announced in September."

"Reminder that the BoJ accelerated the pace of longer-term JGB purchases last week, pressuring JPY as market participants considered the implications of a more forceful implementation of BoJ policy. Measures of sentiment appear muted, with low measures of implied volatility and a relatively small premium for protection against JPY strength."