JPY is steady on the day – Scotiabank

The Japanese Yen (JPY) is quietly consolidating its recent pullback, attempting to find support following a poor start to July, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

JPY is attempting stabilization following tariff-driven weakness

"Trade tensions have weighed on the yen, as markets have reacted to the US announcement of 25% tariffs from August 1. There remains hope however, given the possibility of a last minute agreement in the period following the July 20 upper house elections."

"Trade developments have been an important consideration for the BoJ, as uncertainty has forced the central bank to pause its policy tightening. The next BoJ decision is on July 31 and markets are pricing a hold."