Analysts at Scotiabank explained that JPY is outperforming in an environment of broad-based risk aversion with a rally to a fresh 17-month high. Domestic developments are adding to JPY gains as market participants consider fiscal developments and the front-loading of budget spending in the first half of Japan’s fiscal year. Key Quotes: "The plans suggest a shift in focus from monetary stimulus and may provide for JPY strength on the back of relative policy considerations. Risk reversals are shifting dramatically, suggesting a rise in demand for protection against JPY strength across a range of time frames." "The one week risk reversal has retraced over 50% of its rally from early February. Official commentary has escalated in response to the (USD/JPY) break of the all-important 111 level, and Chief Cabinet Secretary Suga has suggested that he is ‘watching FX level movements with a sense of urgency’. The comments provided for a short-lived rally in USD/JPY and the move has since been fully retraced." For more information, read our latest forex news.