JPY flows: JPY holding onto small gains

BOJ Ueda comments have helped to underpin the JPY, as speculation grows about additional BOJ normalisation.  However, the market is not getting overdone with the next 10bps hike in the BOJ policy rate nearly discounted for July rather than the June 14 meeting – though we see the move arriving in June.  The G7 statement on Saturday did not prompt a reaction, as the statement on FX volatility did not change and Japan remains on its own re the JPY.  Our bias remains for some further small JPY gains this week (here).