The Japanese Yen (JPY) is up a modest 0.2% vs. the USD and outperforming all of its G10 peers with the exception of NOK, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JPY to trade between 146.50 support and 148.50 resistance

"Domestic trade figures were weaker than expected on the back of disappointing export growth and resilient demand from imports. This week’s data highlight remains the national CPI release scheduled for Friday."

"The continued narrowing in US-Japan yield spreads is offering the JPY critical fundamental support, as domestic yields extend their climb. Japan’s 10Y yield has pushed to a fresh multi-year high, reaching levels last seen in October 2008."

"For USD/JPY, the short-term technicals are neutral and the RSI is at 50. We look to a near-term range bound between 146.50 support and 148.50 resistance."