JPY is soft and fading from range high - Scotiabank

Japanese Yen (JPY) is soft, down 0.3% against the US Dollar (USD) and underperforming all of the G10 currencies as it fades a portion of Wednesday's push toward the upper end of its local range, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Markets eye softer data in context of fluid BoJ outlook

"The release of disappointing labor cash earnings data appears to be weighing on the currency as market participants consider its implications for broader inflationary pressures and the BoJ's response."

"The outlook for BoJ policy has been in flux in recent weeks, as bond turmoil called into question the possibility of a change in the overall tightening stance. Official communication has since affirmed policymakers' resolve to continue tightening, however subsequent media reporting have suggested otherwise."

"Ultimately, JPY remains well supported by narrowing spreads as JGB yields have failed to keep pace with the decline in US Treasury yields."