USD/JPY: BTMU believes risk is on the downside in the coming weeks

"The disappointing start of the year - in terms of the economic calendar - continued to weigh on risky assets.

The yen was the first winner of this period of risk aversion. The EUR/USD is approaching its low of August, 116.15.

The yen's safe haven status will likely maintain strong demand as the overall risk sentiment is likely to remain fragile.

The stock market and commodity price declines and the devaluation of the Yuan prompt investors to revise their growth prospects. External developments will continue to dictate the direction of the yen in the next few weeks.

The downside risks are growing for the USD/JPY" says BTMU.