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JPY lags G10 despite broad USD weakness – Scotiabank
By FXStreet Insights Team
Date Published: 12 Jan 2026 | Date Modified: 12 Jan 2026
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The Japanese Yen (JPY) is trading flat to the US Dollar (USD) while underperforming all of the G10 currencies in an environment of broad-based USD weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
The Japanese Yen (JPY) is trading flat to the US Dollar (USD) while underperforming all of the G10 currencies in an environment of broad-based USD weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
USD/JPY bias turns bullish above 158
"The yen’s relative underperformance is notable, following last week’s fundamentally-driven decline that followed softer than expected labor cash earnings data. We fear the risk of a renewed delay to the BoJ’s tightening plans and note the bullish reversal in US-Japan spreads – a headwind for the yen."
"Sentiment is delivering added pressure, as we note the continued moderation in the premium for protection against JPY strength. USD/JPY technicals appear to be leaning bullish, with a bias that is underscored by Friday’s range break and short-lived push above 158. We note the importance of the January 2025 high at 158.87 and the July 2024 high at 161.95."
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