​​​​​​​USD/JPY all eyes on 100-day SMA - Scotiabank

Eric Theoret, Strategist at Scotiabank, notes that USD/JPY technicals have turned bullish and all eyes are on the 100 day MA at 103.75, which is a trend level that has not been breached since February.

Key Quotes

“JPY is soft, underperforming most of the G10 currencies with a 7th consecutive session of decline vs. the USD. Domestic developments have been limited, with relative central bank policy driving the most recent move in JPY as market participants reassess the shifting Fed outlook in an environment of moderating risk aversion.”

“USDJPY short-term technicals: bullish—both the MACD and RSI have turned bullish in response to the impressive seven-session rally in USDJPY. The 50 day MA has been cleared and all eyes are on the 100 day MA at 103.75—a trend level that has not been breached since February 2nd. Near-term support is expected at 102.”