USD/JPY: bias to the upside, for now - Scotiabank

JPY is underperforming with a decline from Friday’s close, its weakness driven by the broader market tone and signs of risk appetite.

Key Quotes:

"Measures of implied JPY volatility are softening and risk reversals hint to a continued moderation in the premium for protection against JPY strength."

"Yield spreads are providing for added pressure, and the balance of risk appears biased to JPY weakness. Domestic risk is limited ahead of next week’s Q2 GDP."