Eric Theoret, CFA, CMT FX Strategist at Scotiabank explained that recent JPY gains have been driven by sentiment on the back of a deterioration in the broader tone. Key Quotes: "Risk appears balanced to the upside as we consider the widespread rise in FX volatility. Risk reversals have stabilized following their recent, dramatic shift with a surge in the cost of protection against JPY strength." "There was no discernible JPY reaction to Chief Cabinet Secretary Suga’s comments threatening action—‘watching FX markets with a sense of vigilance’. Japan remains bound by the 2013 G7 statement by finance ministers and central bank governors to ‘not target exchange rates." For more information, read our latest forex news.