The Japanese Yen (JPY) is up 0.3% against the US Dollar (USD) and outperforming all of the G10 currencies as we enter Monday’s NA session. Interest rate differentials are narrowing in a JPY-supportive manner as US Treasury yields remain soft, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.
Near-term risk in Tankan sentiment survey figures
"Markets appear to be looking through a weaker than expected industrial production release and disappointing housing starts data. This week’s highlight will be the release of the quarterly Tankan sentiment survey figures, scheduled for release after Monday’s NA close, and we look to potential headline risk out of the ECB’s Sintra forum where BoJ Gov. Ueda is scheduled to speak."
"For USD/JPY, the technical outlook remains bearish as the RSI has drifted below 50, opening up the potential for a push toward the recent range low around 142.50."
