USD/JPY: stablising post Brexit declines - Scotiabank

In respct of USD/JPY, analysts at Scotiabank explained that the yield spreads are steady, and measures of JPY volatility are showing signs of stabilization following their post-Brexit decline.

Key Quotes:

"Risk reversals suggest a slight increase in the premium for protection against JPY strength, and media rumors are hinting to the potential for disappointment at the BoJ’s September meeting as the policymakers’ assessment (announced in conjunction with the July stimulus) is said to endorse the existing policy path."