USD/JPY: what are the near -term risks for Yen now? - Scotiabank

Analysts at Scotiabank suggest that the near-term risk lies with the release of domestic industrial production data (12:30am ET) ahead of next week’s BoJ policy decision. 

Key Quotes:

"Media rumors are hinting to a potential downgrade to the central bank’s CPI forecasts.

Relative central bank policy favors JPY weakness as market participants consider the BoJ’s recent efforts at enforcing its yield curve control policy.

The 10Y yield appears soft with a steady retreat from last week’s highs following the fixed-rate operation."