JPY is a relative outperformer on trade data surprise – Scotiabank

The Japanese Yen (JPY) is entering Wednesday’s NA session with a 0.3% gain, outperforming nearly all of the G10 currencies in an environment of mild USD weakness, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

Focus on CPI reports on Thursday

"The yen’s overnight gains followed the release of better than expected trade figures with a smaller than expected deficit for the month of May. This week’s domestic data highlight remains the national CPI figures, scheduled for release following Thursday’s NA close."

"Inflation in Japan remains over 3% and is a key contributor to the BoJ’s ongoing commitment to policy normalization. For USDJPY, we note the importance of the 145 resistance level in limiting recent gains while nearterm support has been observed around 142.50."