Yen advancing on risk-off - Scotiabank

Analysts at Scotiabank noted that JPY is strong, outperforming all of the G10 currencies, strengthening in an environment of mild-risk aversion following the U.K./U.S. long weekend. 

Key Quotes:

"The bulk of JPY’s gains were observed early in the Asian trading session, shortly following the release of stronger than expected retail sales data. The broader tone is likely to remain dominant throughout the NA session as we look to the U.S."

"We note the firming in measures of implied JPY volatility with risk reversals hinting to a rise in the premium for protection against JPY strength."

"The near-term balance of risk appears to favor JPY strength."