The Japanese Yen (JPY) is entering Monday’s NA session flat against the US Dollar (USD) as it consolidates just above the lower end of its recent narrow range, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Markets eye BoJ’s return to tightening

"The outlook for relative central bank policy remains a source of fundamental support for the JPY, as markets eye the BoJ’s return to tightening following its recent pause. Short-term rate expectations are pricing little tightening for the next meeting in September, but have about 10bpts of tightening for October and 15bpts by year-end."

"This week’s highlight will be the release of Q2 GDP data on Thursday. We look to a near-term USD/JPY range bound between 146.50 support and 148.00 resistance."