The Japanese Yen (JPY) is up an impressive 0.4% against the US Dollar (USD) and outperforming all of the G10 currencies as we head into the end of the week, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

FinMin threatens intervention

"The bullish reversal is notable, and follows comments from Finance Minister Katayama threatening intervention to offer support for the yen. Fundamental releases have included stronger than expected PMI’s and national CPI data that were in line with expectations around 3.0% y/y."

"Japan’s trade figures for October also revealed unexpectedly robust export growth along with a surprise in imports, suggesting resilience in domestic demand. USD/JPY technicals remain bullish but the RSI has pulled back from overbought levels above 70, offering a potential pause following its impressive rally and test of anticipated resistance around 157.50."