USD/JPY bullish on Central Bank divergence - Scotiabank

Analysts at Scotiabank recently noted that the Vice Minister of Finance for International Affairs Asakawa has expressed concern about ‘undesirable’ currency moves, reiterating language used in the official G7 statement on exchange rates.

Key Quotes:

"We do not expect intervention, and maintain a bearish JPY (bullish USD/JPY) outlook on the basis of relative central bank policy given the contrast between a tightening Fed and an accommodative BoJ."

"USD/JPY short-term technicals: neutral-bullish. We look to near-term support around 106.50 and anticipate gains toward 108."