USD/JPY: bullish and watching U.S. 2Y spread - Scotiabank

Analysts at Scotiabank noted that JPY is weak and a mid-performer among the G10 in an environment of broad-based USD strength.

Key Quotes:

"We maintain a bias to JPY weakness (USD/JPY gains) on the basis of relative central bank policy, and note the continued widening in the 2Y U.S."

"Japan yield spread to 114bpts at levels last seen in 2008. Domestic releases are relatively limited, leaving the near-term focus squarely centered on broader developments ahead of the CPI data later this week."