The Japanese Yen (JPY) is down a marginal 0.1% against the US Dollar (USD) and finally recovery from the lower end of the performance rankings that had characterized its trading earlier in the week, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JPY remains bullish on BoJ/Fed outlook into fall

"Overnight releases were limited to second tier data and markets are eyeing the 7:30pm ET labor cash earnings figures—a key consideration for the BoJ. Our fundamental outlook remains bullish JPY as we look to renewed tightening from the BoJ, and see the September 17 meeting as an opening to prepare markets for a hike in late October."

"For USD/JPY, we are bearish, anticipating a more meaningful reversal of this weeks gains and a near-term push back toward the 50 day MA (147.23)."