Analysts at TD Securities are staling ling of the yen into this risk-laden week.
"With the Fed set to deliver a widely expected rate hike and the ECB to have a more fruitful discussion about its QE policy, the BoJ will be happy to skirt the limelight this week. Little changes should be expected overall."
"The BoJ bought itself more flexibility in April. While the removal of the 2% inflation timeline means a steady-as-she-goes course of policy, it gives the BoJ leeway to tweak YCC when there is enough evidence of price persistence - likely as the ECB nears or completes QE. Despite the recent slowdown, underlying CPI should be supported thanks to a solidly positive output gap, which feed through with a lag."
"The recent USD uptrend has nearly matured as markets appear to move away from "divergence". This, along with a number of medium-term factors may challenge USD/JPY's beta to UST yields, but leave the JPY conflicted on crosses (EURJPY most notably)."
"The technical backdrop suggests a breakout is imminent, and view a move below 108 as bearish. 110.20 resistance is formidable; a move above is likely to be a false breakout and should be faded."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.