JPY soft and underperforming G10 in quiet trade – Scotiabank
The Japanese Yen (JPY) is soft, down 0.2% against the US Dollar (USD) and underperforming nearly all of the G10 currencies in overall quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

The Japanese Yen (JPY) is soft, down 0.2% against the US Dollar (USD) and underperforming nearly all of the G10 currencies in overall quiet trade, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Focus on new PM’s fiscal plans & inflation with ~3% CPI

"The JPY continues to trade defensively in the aftermath of PM Takaichi’s arrival, as market participants assess her impact on the BoJ and the fiscal implications of her economic plans. The PM is looking to specifically tackle elevated inflation by targeting gasoline taxes and reduce the overall tax burden on earned income."

"Overnight inflation data were in line with expectations, with core and headline printing at or close to 3% y/y—holding at levels seldom seen over the past several decades."

"For USD/JPY, we remain neutral within the recent local ~149.50/153 range but acknowledge that this week’s recovery is setting up a potential upside break. We would expect limited resistance ahead of the mid-156/mid-158 area."

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