Yields pressure the yen, USD/JPY can get to 113.00 - Scotiabank
|Analysts at Scotiabank explained that yield spreads are widening in a JPY-negative manner, and options markets are suggestive of a moderation in the premium for protection against JPY weakness.
Key Quotes:
"Near-term domestic risk is elevated as we look to Friday’s industrial production and CPI.
USD/JPY short-term technicals: bullish—USDJPY has tested a fresh (albeit marginal and short-lived) one-month high above 112."
"Momentum indicators are modestly bullish, and trend indicators are providing confirmation. We highlight the absence of any significant resistance ahead of 113."
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