Analysts at Scotiabank explained that JPY is outperforming, strengthening steadily in response to the BoJ’s policy hold. Key Quotes: "Both rates and asset purchase plans were held steady, however the tone was explicitly dovish as the statement left open the possibility of ‘additional easing measures in terms of three dimensions -- quantity, quality, and the interest rate -- if it is judged necessary for achieving the price stability target’. We maintain a bearish JPY forecast driven by expectations of relative central bank policy. Monday’s widening in the 2Y U.S.-Japan yield spread pushed it to 113bpts, at levels last seen in October 2008, with risk of further widening through Wednesday’s Fed events." For more information, read our latest forex news.