USD/JPY: awaiting turbulence from Trump-Xi meeting - Scotiabank

Analysts at Scotiabank noted that JPY  was outperforming all of the G10 currencies this week while trading in tandem with gold. 

Key Quotes:

"Sentiment is dominating as the broader tone of risk aversion delivers support commensurate with JPY’s risk profile as a safe haven currency. 

Options markets remain quiet and the cost of protection against JPY strength is remarkably low. 

There is considerable room for a build in the premium for protection against upside risk, given the potential for continued turbulence into the Trump-Xi meeting later this week."