Yields pressure the yen, USD/JPY can get to 113.00 - Scotiabank

Analysts at Scotiabank explained that yield spreads are widening in a JPY-negative manner, and options markets are suggestive of a moderation in the premium for protection against JPY weakness. 

Key Quotes:

"Near-term domestic risk is elevated as we look to Friday’s industrial production and CPI. 

USD/JPY short-term technicals: bullish—USDJPY has tested a fresh (albeit marginal and short-lived) one-month high above 112."

"Momentum indicators are modestly bullish, and trend indicators are providing confirmation. We highlight the absence of any significant resistance ahead of 113."