JPY bears remain vulnerable to adjustment - Scotiabank

Analysts at Scotiabank noted that the outlook for relative central bank policy is offering modest support however sentiment and positioning remain critical and JPY bears remain vulnerable to adjustment. 

Key Quotes:

"Domestically, near-term risk lies with the CPI data at 7:30pm ET. 

The latest BoJ comments from board member Wakatabe provided no major surprises with a reiteration of a bias toward exceptional levels of accommodation alongside a pushback on questions about purchases of U.S. debt. 

Risk reversals are steady, for both EUR/JPY and USD/JPY."