FXStreet (Guatemala) - Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that the JPY is outperforming in an environment of elevated risk aversion, with a near term focus on renewed turbulence in China’s equity markets, geopolitical risks in the South China Sea, and positioning ahead of Wednesday’s Fed. Key Quotes: "We remain biased to medium-term USD/JPY gains (JPY weakness) driven by fundamentals, however we acknowledge the potential for near-term safe haven-driven movement providing for a decline in USD/JPY (JPY gains). The influence of domestic releases is likely to be diminished in the current environment, with upcoming industrial production and CPI most important for policymakers at the BoJ ahead of Friday’s (Thursday NA evening) decision. The majority (2/3) of Bloomberg forecast contributors expect a steady (JPY80trn) annualized pace of asset purchases, with the remainder looking for greater stimulus." For more information, read our latest forex news.