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JPY is weak towards 104 - Scotiabank

FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted the weakness in the yen and looks ahead to 105 territories.

Key Quotes

"JPY is weak, down 0.1% since yesterday’s NA close and over 2% since last week’s high. This shift pushes USD/JPY to a 2.5 month high, flirting with 104."

"As risk aversion has faded, some of the downward pressure on USD/JPY has eased and shifted the focus back to the soft domestic fundamental backdrop and the risks of rising U.S. interest rates. We hold a year-end USD/JPY forecast of 109."

"USD/JPY short‐term technicals: bullish—technical studies have shifted increasingly bullish, warning of a near term push through 104 and towards the January high of 105.44."