The Japanese Yen (JPY) is entering Wednesday’s NA session with a marginal 0.1% decline against the US Dollar (USD) as it underperforms most of the G10 currencies along with its haven peer Swiss Franc (CHF), Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Spreads remain supportive

"Sentiment has dominated and offered critical yen support through President Trump’s recent visit however fundamentals are likely to come back into focus as markets eye Wednesday’s Fed and Thursday’s BoJ. The JPY remains uncorrelated to its fundamentals, with spreads implying material strength relative to spot."

"Markets are expecting no change from the BoJ and look to tightening in either December or January. Comments from Treasury Secretary Bessent called on Japan government (and its new PM) to allow the BoJ to fight inflation with tighter policy. For USD/JPY, we note the possibility of a double top in the low-153s offering a measured move target below 146."