Analysts at Scotiabank explained that JPY has consolidated its early February gains and has entered March at the upper end of its one year range. Key Quotes: "Its divergence to EUR has been notable, with a failure to weaken in response to the moderation in risk aversion through the latter half of February. Measures of sentiment are bullish with a four year high in the $5.9bn net long CFTC position as of February 23 and longer-term risk reversals suggesting steady demand for protection against JPY strength. We anticipate a fade in sentiment and refocus toward fundamentals. We hold a Q2 USD/JPY forecast of 129." For more information, read our latest forex news.