USD/JPY further to go on the upside? - Scotiabank

JPY is soft and retreating from a fresh 8 session high. 

Key Quotes:

"The BoJ left its - 10bpt policy rate unchanged, as expected, and the 10 year yield target was maintained at 0%. The 2017 growth forecast was upgraded modestly, to 1.9% and the inflation outlook was softened to 0.8% and 1.4% for 2017 and 2018 (from 1.1% and 1.5%)."

"Gov. Kuroda maintained a dovish tone and pushed back calls for normalization. The 10Y spread is showing signs of stabilization around Monday’s one week low at 230bpts and short-term risk reversals appear to be building a greater premium for protection against JPY strength. We look to further near-term consolidation in JPY."