USD/JPY: lower on higher fixed income and risk-off markets - Scotiabank

Analysts at Scotiabank JPY is up vs. a struggling USD and outperforming all of the G10 currencies along with gold. 

Key Quotes:

"Sentiment remains dominant in the context of intensifying risk aversion and weakness across most global equity indices."

"The decline in U.S. yields is pressuring yield spreads in a JPY-supportive manner and once again lifting the premium for protection against JPY strength."

"We note the importance of near-term USD/JPY support at the 50 day MA."

"EUR/JPY also appears vulnerable as it pushes back toward its recent low just under 128.50."