USD/JPY short-term technicals look bearish - Scotiabank
|Eric Theoret, Strategist at Scotiabank, notes that JPY is resolving its recent consolidation with an upside break on the back of a turn in the broader market tone.
Key Quotes
“JPY is outperforming along with gold, resolving its recent consolidation with an upside break on the back of a turn in the broader market tone. The outlook for relative central bank policy remains dominant in the absence of domestic data, and rumors are adding to JPY’s strengthening bias as market participants consider local media headlines hinting to the potential for a steady BoJ policy stance at the November 1 meeting. Measures of sentiment are stable, and options markets are pricing a modest premium for protection against JPY strength.”
“USDJPY short-term technicals: bearish—USDJPY has resolved its recent consolidation with a break below the 9 day MA and we look to further downside toward the 21 day MA in the mid-102s. Bullish momentum signals have softened to neutral, and DMI’s are confirming the shift in the balance of risk. Resistance is expected above 103.80.”
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