USD/JPY is consolidating recovery from range low – Scotiabank

The Japanese Yen (JPY) is also trading flat against the US Dollar (USD) and consolidating its recent recovery from the lower end of its recent range, Scotiabank's Chief FX Strategists Shaun Osborne and Eric Theoret report.

USD/JPY to push to the lower end of the recent 142- 148.50 range

"The passing of election risk has shifted the focus back to fundamentals and the upcoming BoJ policy decision on July 31. The near-term balance of risk favors JPY strength as we look to the possibility of an improvement in the BoJ’s tone and its assessment of the outlook."

"US/Japan talks are ongoing and negotiators have meet 8 times since talks began in April. For USDJPY, we remain bearish looking to a push to the lower end of the recent 142- 148.50 range."