Yen battling back but vulnerable - Scotiabank

Analysts at Scotiabank noted that JPY had been outperforming along with gold, supported by the deterioration in the broader tone in an environment of mild risk aversion.

Key Quotes:

"The gain is relatively minor and has only allowed for a partial retracement of the cumulative 2% decline observed on Monday and Tuesday."

"Official FX commentary continues, with PM Abe’s adviser Hamada said to have identified the 100 level in USD/JPY as one that could trigger intervention."

"We do not anticipate any intervention ahead of the G7 meetings later this month. In terms of sentiment, JPY remains vulnerable to adjustment with near-record bullish positioning."