JPY seeing impressive gains on solid fundamental data – Scotiabank

Japanese Yen (JPY) is strong, up 0.8% against the US Dollar (USD) and outperforming most of the G10 currencies in an environment of broad-based USD weakness, Scotiabank’s Chief FX Strategist Shaun Osborne notes.

BoJ to maintain tightening bias

“Domestic data remain strong, and the latest manufacturing PMI offered a modest surprise with a print of 49.4. The solid fundamental outlook should allow the BoJ to maintain its bias toward policy tightening and we’ll be looking for confirmation in Gov. Ueda’s speech on Tuesday.”

“USD/JPY technicals are marginally bearish, however this latest decline looks to be threatening a drop to fresh local lows and a push to the longer-term range low around 140.”