Analysts at Scotiabank explained that sentiment continues to dominate movement in JPY. Key Quotes: "We note a sizeable disconnect to levels implied by yield spreads and a tight correlation to risk reversals." "JPY showed no discernible response to comments from Gov. Kuroda, and the softer than expected preliminary PMI failed to generate a reaction." "USD/JPY is testing near term resistance around 113.40, a level that roughly coincides with the 200 hour MA and the 38.2% Fibo retracement of the Feb 11-16 rally." For more information, read our latest forex news.