USD/JPY: broader tone remains despite political developments - Scotiabank

Analysts at Scotiabank noted USD/JPY's recent price activity attributed to ongoing political headwinds.

Key Quotes:

"JPY made a steady retreat from its knee-jerk Asian session gains driven by domestic political developments with Prime Minister Abe is set to reshuffle his cabinet on Thursday. 

The broader tone remains dominant and spreads remain crucial. 

There are no major domestic releases scheduled ahead of labor cash earnings later this week."