Japanese Yen (JPY) is up a modest 0.2%, outperforming most of the G10 currencies in quiet trade, Scotiabank's Chief FX Strategist Shaun Osborne notes.

Higher yields offer support to the JPY via spreads

"Bond market developments continue to dominate the narrative and Japan’s latest weak bond auction is lifting domestic Japanese Government Bond yields and narrowing spreads in a JPY-supportive manner."

"Domestic releases have been limited however the calendar is heavy into the end of the week with employment, Tokyo CPI, industrial production, and retail sales data. A speech from BoJ Gov. Ueda has been added to the calendar for next week, and will be closely scrutinized for any possible shift in tone heading into the June 17 policy decision."

"The BoJ has remained decidedly hawkish year-to-date and its tightening stance has been met with bond market turbulence in recent weeks."