BoJ: subject of intense speculation - Scotiabank

Analysts at Scotiabank explained that JPY is flat this week’s highly-anticipated BoJ meeting and policy decision (following Thursday’s NA close) is coming up.

Key Quotes:

"The BoJ’s policy outlook has been the subject of intense speculation with risk balanced to greater accommodation and some potential coordination with fiscal authorities. 

Fundamentals are providing for JPY weakness as the U.S.-Japan 2Y yield spread climbs to the upper end of its two month range, and measures of sentiment are adding to JPY pressure as risk reversals continue to fade the late June (Brexit-driven) rise in the premium for protection against JPY strength."