USD/JPY: political risk and BoJ this week are drivers- Scotiabank

Analysts at Scotiabank noted that they JPY consolidating within a tight range just below Friday’s multi-year high, a relative outperformer in an environment of mild risk aversion and broad-based USD strength. 

Key Quotes:

"Sentiment and fundamentals are offering support as market participants consider uncertainty out of Italy and look to this week’s BoJ meeting. 

Recent comments from Gov. Kuroda have shifted the focus to the BoJ’s policy normalization plans with timing centered around April 2019. 

We look to continued near-term outperformance in JPY."