"The fortunes of the JPY remain strongly tied to the outlooks for the BoJ and the FOMC. JGB auctions provide regular updates on investors' thinking about the BoJ and have shown 20-30bp rises in the yields of auctions held since the BoJ's meeting on 29 July. So, the 20Y auction this week will be worth paying attention to.

However, it will be the rhetoric from BoJ Governor, Haruhiko Kuroda, and FOMC Chairwoman, Janet Yellen - who will both be speaking this week - that will dominate the JPY's fortunes.

Any reaction to Japan's inflation data at the end of the week will likely be muted by investors waiting to hear what Yellen has to say at Jackson Hole. PPI inflation, which has been weighed down by the strong JPY, suggests continued weakness in inflation".

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