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Analysts at Scotiabank noted that JPY was a mid-performer among the G10 in an environment of broad-based USD weakness.  

Key Quotes:

“The outlook for relative central bank policy appears to be dominating as market participants consider potential adjustments to the BoJ’s yield curve control policy and specifically the 0% target for Japan’s 10Y yield.”

“Risk reversals have adjusted accordingly and are now pricing an even greater premium for protection against JPY strength vs. both the USD and EUR. No policy changes are expected at next week’s BoJ meeting.”