JPY quiet at range low ahead of BoJ later in week – Scotiabank

The Japanese Yen (JPY) is entering Tuesday’s NA session unchanged against the US Dollar (USD) as it consolidates its recent decline to the lower end of its multi-month range, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

Spreads still supportive

"Spreads are steady at the short end and trending narrower at the long end, offering the JPY some fundamental support."

"All eyes are on this week’s BoJ despite expectations for a hold as market participants broadly expect a shift back toward hawkishness and a bias to renewed tightening following the moderation in bond market turbulence, the passing of the upper house election, and the successful conclusion of US/Japan trade talks."

"Japan will release retail sales and industrial production data ahead of the central bank decision."