The Japanese Yen (JPY) is up 0.3% against the US Dollar (USD) and outperforming most of the G10 currencies into Thursday’s NA open, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Outlook remains bearish for USD/JPY

"Comments from BoJ Dep. Gov. Uchida were hawkish, confirming the recent shift in the central bank’s messaging as it prepares markets for a near-term rate hike. Gov. Ueda is scheduled to speak after Thursday’s NA close, at 9:05pm ET and is likely to reinforce the BoJ’s tightening bias. Yield spreads have narrowed to fresh multi-year lows in the aftermath of Wednesday’s ADP, offering the yen critical fundamental support."

"For USD/JPY, we see little in terms of support between between the mid/lower-146 area and the late May low around 142.00. We remain bearish given the considerable fundamental pressure on USD/JPY."