USD/JPY rose from 111.30 to 111.80 overnight but has just inched a touch higher as investors get set for the BoJ today which meets in a tough situation whereby its policy tools are not having the desired effect and as we heard yesterday, whereby the Japanese government talks of a potential downgrade to its assessment of the economy, the BoJ will also note that domestic economic conditions are softening.

Meanwhile, the US 10yr treasury continues to drift sideways, between 2.61% and 2.64% and the futures markets are factoring in an increasing chance, now to 20%, that the Fed will have cut by December - weighing on the greenback that struggles towards 98 in the DXY.

Source: FXtsreet