The Japanese Yen (JPY) is up 0.2% against the US Dollar (USD) and pushing toward the upper end of its recent range, supported by fundamentals and the relentless narrowing in US-Japan yield spreads, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JPY is bullish on the day

"Comments from BoJ policymakers are relatively rare when compared to major peer central banks, and the latest speech from BoJ board member Nakagawa was unequivocally hawkish as she highlighted diminished trade policy uncertainty and an improvement in the environment for a rate hike."

"USD/JPY is attempting a break below its 50 day MA (146.99), opening up the potential for a push to the lower end of its range from late July, around 146.00. The RSI is marginally bearish and a more meaningful decline would target the late May low around 142.00."