Scotiabank strategists Shaun Osborne and Eric Theoret note modest Japanese Yen gains versus the Dollar, noting outperformance within the G10 but only a partial recovery of recent BoJ‑related losses. Markets have reacted positively to hawkish comments from BoJ board member Takata, who called for rate hikes in response to strong inflation. The bank is focused on a USD/JPY break from the established 152–159.50 range.

Hawkish BoJ tone and key levels

"The yen is up a modest 0.2% vs. the USD but outperforming all of the G10 currencies in an environment of broad-based USD strength."

"The yen’s gains are muted relative to its recent losses however, as it attempts to claw back a slight portion of this week’s BoJ-related weakness."

"The latest developments have been constructive however, as markets have responded positively to hawkish comments from BoJ board member Takata, calling for rate hikes in response to ‘heated’ inflation."

"Data risk returns with Tokyo CPI, retail sales, and industrial production all scheduled for release after Thursday’s NA session."

"For USDJPY, we await a break of the local range bound between 152 support and 159.50 resistance. "

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)