The Japanese Yen (JPY) is leading the currency run higher on the US Dollar (USD), Scotiabank's Chief FX Strategist Shaun Osborne notes.

Markets position for higher inflation data

"The JPY is leading the currency run higher on the USD, with traders taking on board hawkish comments from BoJ policymaker Takata earlier this week and positioning for another jump in Japan’s rate of inflation which will support the outlook for moderately tighter policy."

"Japan releases CPI data this evening. January inflation is expected to push up to 4.0% Y/Y."