Scotiabank strategists Shaun Osborne and Eric Theoret highlight the Japanese Yen (JPY) as the best-performing G10 currency on the day, though gains versus the US Dollar (USD) are marginal. Wage data disappointed but remains historically elevated, while USD/JPY trades just below its highest level since 1986 around 162.80. The RSI has eased from overbought territory but stays firmly bullish near 60, underscoring still-strong upside momentum.

Yen stabilizes but trend still strong

"The yen is outperforming all of the G10 currencies into Tuesday’s NA session, despite its marginal 0.1% gain vs. the USD."

"The stabilization is welcome following Monday’s decline that had had almost fully retraced last week’s (allegedly intervention-driven) rally."

"Labor cash earnings (wage) data released overnight disappointed relative to expectations while remaining elevated at the upper end of their multi-decade range."

"USD/JPY is equally elevated, trading just below its July 1 high just above 162.80—its highest level since 1986."

"In terms of technicals, the RSI is well off last week’s overbought (70+) peak but still firmly in bullish territory around 60."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)