The Japanese Yen is up modestly against the US Dollar (USD) and a mid-performer among the G10 as we head into Tuesday’s NA session, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JGB yields find renewed support

"Japanese government bond yields are on the move, with the short end threatening fresh local highs while the 10Y yield threatens fresh multi-decade highs."

"Domestic rate expectations are firming, and could find renewed support on the back of this week’s data which include trade (Wednesday), PMI’s (Thursday), and CPI (Friday). The CPI figures are critical, with both headline and narrower measures expected to retain a 3% handle. "

"For USD/JPY, the technicals are neutral in the near-term with an RSI hovering just above 50. The medium-term balance of risk is bearish and we look to a break back below the 50 day MA (146.6) targeting the late May low around 142."