US-Japan bond spreads a significant support for the USD/JPY - Scotiabank

Analysts at Scotiabank explained the latest around USD/JPY.

Key Quotes:

"Japan’s All Industry Activity index rose a stronger than expected 2.1% in Apr, offsetting a downwardly revised 0.7% fall in Mar. 

US-Japan 10-year bond spreads remain a significant source of support for the USD currently, although Japanese investors appear to have reined back their interest in US Treasury bonds in recent months, suggesting less sensitivity to US yields."