Yen strength and upbeat comments from Kuroda - Scotiabank

Analysts at Scotiabank noted the yen's strength on the back of relatively upbeat comments from BoJ Gov. Kuroda.

Key Quotes:

"The current policy stance was deemed appropriate, however, market participants were likely caught off guard by the Governor’s comments on policy normalization discussing the prospect of an exit from QQE and yield curve control."

"JPY appears somewhat weak relative to levels implied by interest rate differentials at both the short and longer-end of the curve, with ongoing pressure from the broader tone of risk appetite."

"Levels of implied JPY volatility are low, however, risk reversals are suggestive of a creeping rise in the premium for protection against JPY strength."