Yen is underperforming the majority of G10's, sentiment appears dominant - Scotiabank

Analysts at Scotiabank explained that JPY is weak and underperforming all of the G10 currencies with the exception of AUD, pushing to levels last seen in mid-March.

• USD/JPY rises further above 114.00 - FXStreet

Key Quotes:

"Disappointing domestic data have pressured JPY with a notable drop in labor cash earnings—down 0.4% y/y to reach levels last seen in mid-2015."

"However, the move in JPY is not being supported by yield spreads and we continue to highlight the risk of a realignment."

"Sentiment appears dominant, and risk reversals suggest a continued erosion in the premium for protection against JPY strength."

"A reminder that JPY’s risk profile leaves it vulnerable to weakness in periods of risk appetite and knee-jerk haven-driven strength in periods of risk aversion."