JPY is soft, lacking clear catalyst – Scotiabank

The Japanese Yen is soft, down 0.2% against the US Dollar (USD) and underperforming most of the G10 currencies along with AUD and NZD, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

CFTC data reveal liquidation of JPY longs

"Domestic releases have been limited and yield spreads remain steady, offering little in terms of fundamental drivers. The market tone is also lacking in terms of clarity, suggesting that the latest pullback in JPY is likely to be driven by market positioning."

"The latest CFTC data revealed a continued erosion in the bullish JPY position, which has been steadily declining since April. Near-term risk lies with the Q2 GDP and industrial production releases later this week."