JPY is remarkably quiet - Scotiabank

Japanese Yen (JPY) is entering Tuesday's NA session unchanged vs. the US Dollar (USD), having faded its marginal BoJ-driven gain following the central bank's policy decision, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret note.

JPY is fading modest BoJ-driven gain

"Rates were left unchanged, as expected, at 0.5% and policymakers announced a less aggressive plan for policy normalization with figures that had previously been signaled to markets - paring the pace of bond market purchase reductions from JPY400bn/quarter to JPY200bn/quarter."

"The tone was neutral overall, highlighting uncertainty from trade tensions and muted underlying inflationary pressures. This week's domestic risk continues with trade data scheduled for release following Tuesday's NA close and national CPI figures scheduled for release later this week."

"Geopolitical tensions present a major risk for JPY, given its role as a safe haven currency and its tendency to strengthen in periods of financial market turbulence."