USD/JPY: fundamental data impact reduced on BoJ tone - Scotiabank

FXStreet (Guatemala) - Eric Theoret, CFA, CMT FX Strategist at Scotiabank noted that USD/JPY is quiet, consolidating around the lower end of its two week range.

Key Quotes:

"Near term risk lies with the domestic CPI data, however its impact is likely to be reduced in light of the BoJ’s increasingly resolute tone with a bias to maintaining the current stance of accommodation—despite the deterioration in domestic data.

Our fundamentally-driven expectations for USD/JPY gains are fading modestly, and we continue to highlight the risk of USD/JPY weakness in periods of risk aversion."