JPY unable to capture safe-haven support - Scotiabank

JPY is soft and drifting back toward last week’s low, unable to capture safe haven support in the context of ongoing EM turbulence. 

Key Quotes:

"Widening interest rate differentials are maintaining pressure on JPY as measures of implied volatility show signs of stabilization."

"Risk reversals are also stabilizing, and EURJPY is once again rising after finding support around the 38.2% retracement of the mid-late August rally."

"This week’s domestic releases are limited to Friday’s labor cash earnings data."