USD/JPY looks to be consolidating ahead of another push lower - Scotiabank

USD/JPY turned sharply lower this week and technicals look negative, according to analysts at Scotiabank, which noted the USD will post its largest weekly loss in three months.

Key Quotes

USD/JPY looked well-bid above 105 and heading higher last week but the turn lower this week has been significant—the USD will post its largest weekly loss in three months—amid broader risk aversion. Market jitters around the US election were compounded by another sharp fall in the Nikkei 225 earlier.”

“USDJPY short-term technicals: negative—intraday trends suggest more softness ahead of the USD. USDJPY has eased under intraday support in the upper 103 area and now looks to be consolidating ahead of another push lower. We see intraday support at 1402.75. Resistance is 103.35.”