Yen hit by US yields and stock market rally - Scotiabank

Analysts at Scotiabank explained the recent developments on a fundamental basis for the Yen.

Key Quotes:

"The stronger equity markets, undercutting the safe-haven bid for the JPY, and a renewed widening in US-Japan 10Y spreads in the USD’s favour over the past week (roughly 12bps to around 230bps) account for the renewed softness in the JPY today. 

The BoJ meets Thursday and is expected to maintain ultra-loose policy. The WSJ reports that BoJ officials want to avoid any sign that markets may take as a pointer to earlier rate increases in order to avoid a rise in the JPY."