FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank explained that the pair is making important developments.
"After rallying to a fresh 8‐month high and breaking out of its long‐held range; USD/JPY dropped back and is now entering the NA session essentially where it closed on Friday. This is an important development particularly as it comes at a time when Governor Kuroda is suggesting that the potential for further BoJ policy action is low."
"Still the market will be focused on economic development from here with this week’s CPI a key input; it is expected to ease back to 3.4%y/y on headline and come in at 3.3%y/y ex fresh food and 2.3%y/y ex-food and energy. We hold a Q314 target of 104 and a year end target of 109."