JPY is underperforming on the day – Scotiabank

Japanese Yen (JPY) is down 0.4% vs. the US Dollar (USD) and underperforming all of the G10 currencies in an environment of modest USD strength.

Markets consider reports of a possible recalibration of BoJ policy

"The focus remains on fundamentals as market participants consider media reports of a possible recalibration of BoJ policy normalization and a less aggressive slowdown in the pace of bond purchases."

"Policymakers will be formulating their longer term bond purchase plans at the next BoJ meeting on June 17. Recent official communication from the BoJ has been decidedly hawkish, with a focus on both rate and balance sheet normalization."

"In terms of technicals, USDJPY is quietly consolidating at the lower end of its two year range and its momentum indicators are close to neutral."