JPY soft and underperforming ahead of BoJ Tuesday – Scotiabank

The Japanese Yen (JPY) is soft against the US Dollar (USD) and underperforming all of the G10 currencies in an environment of mild risk appetite, Scotiabank's Chief FX Strategist Shaun Osborne notes, Scotiabank's Chief FX Strategist Shaun Osborne notes.

JPY is unable to break the psychological 140 support level

"This week’s main domestic risk event for JPY is the BoJ policy decision scheduled for Tuesday. A hold is widely anticipated however the uncertainty centers around the tone as policymakers risk softening their decidedly hawkish tone."

"Domestic bond market volatility remains a core concern for the BoJ and recent comments from Gov. Ueda have hinted to the possibility of a less aggressive path for policy normalization. USD/JPY has been consolidating just below the midpoint of its two mount range and remains unable to break the psychologically important 140 support level – for now."