USD/JPY: 50 dma is a key upside target ahead of BoJ - Scotiabank

Analysts at Scotiabank explained that the greatest risk for JPY lies with the relative policy outlook as market participants focus on the September 21 BoJ policy decision and consider rumors suggesting a lack of consensus among board members.

Key Quotes:

"Measures of implied JPY volatility are steady and risk reversals are stable pricing in a slight premium for protection against JPY strength." 

"We look to further downside toward the August 25 open around 100.50 and note the recent rejection of gains above the 50 day MA reinforcing its importance in affirming the downward trend."