Yen's risk profile awaits FOMC minutes - Scotiabank

Analysts at Scotiabank noted that the JPY was outperforming earlier in an environment of mild risk aversion with sentiment dominating a JPY-bearish widening in interest rate differentials. 

Key Quotes:

"Relative central bank policy remains a core piece of our forecast for JPY weakness, however, we acknowledge JPY’s risk profile and tendency to see knee-jerk haven-driven gains in periods of risk aversion."

"Near-term risk is centred on the release of the FOMC minutes at 2pm ET."

"Its impact will be key as market participants assess the implications for both relative central bank policy and the broader market tone."