USD/JPY deeper rebound towards 108.00/50 on the cards - Scotiabank

Strategists at Scotiabank noted that USD/JPY retains a short-term bullish bias. According to them, consecutive rejections of the 99.95/100 through the mid year period suggest that if the USD can extend gains through the low/mid 104 range, a deeper rebound in the USD towards 108.00/50 may follow.

Key Quotes

“Japanese exports dropped 6.9% in the September year, the 12th consecutive monthly decline; the result was, however, better than market expected and the details of Japan’s trade report looks a little better than the headline suggests (volumes are rising—which is a positive for growth). Imports fell in the month, prompting a JPY498.3bn surplus for the month.”

“USDJPY short-term technicals: bullish—USDJPY is breaking through short-term (intraday, daily) “cloud” chart resistance as the market retests the recent range highs above 104. Consecutive rejections of the 99.95/100 through the mid year period suggest that if the USD can extend gains through the low/mid 104 range, a deeper rebound in the USD towards 108.00/50 may follow.”