10 Nov 2015
USD/JPY: bullish momentum eyes 124.00 - Scotiabank
FXStreet (Guatemala) - Analysts at Scotiabank explained that they remain biased to fundamentally-driven weakness in JPY on the basis of relative central bank policy and Fed-BoJ divergence.
Key Quotes:
"However we acknowledge the potential for violent, short-lived bouts of JPY strength in periods of risk aversion.
The U.S.-Japan 2Y yield spread remains elevated close to its recent multi-year high, the 30 day rolling correlation to USD/JPY tight at 0.89.
USD/JPY short-term technicals: bullish—momentum signals are strong, the RSI climbing to a fresh high above 70 but still well below the overbought levels observed in June 2015 (81) and September 2014 (87). We look to further gains with a focus on the mid-August levels above 124.00. "
Key Quotes:
"However we acknowledge the potential for violent, short-lived bouts of JPY strength in periods of risk aversion.
The U.S.-Japan 2Y yield spread remains elevated close to its recent multi-year high, the 30 day rolling correlation to USD/JPY tight at 0.89.
USD/JPY short-term technicals: bullish—momentum signals are strong, the RSI climbing to a fresh high above 70 but still well below the overbought levels observed in June 2015 (81) and September 2014 (87). We look to further gains with a focus on the mid-August levels above 124.00. "