USD/JPY: a relief to Japanese policy makers - Scotiabank

Analysts at Scotiabank noted the recent bid conditions surrounding USD/JPY onto the 109 handle this week.

Key Quotes:

"Local policy makers will be relieved that the JPY has softened near-term but investors will be keeping one eye on domestic economic developments to assess the impact of the weekend earthquakes on growth and another policy prospects as the BoJ meets at the end of the month."

"USD/JPY short-term technicals: neutral/bullish—short-term trends are looking a little more constructive for USDJPY. The rebound from the 108 area may extend if spot can rally through 109.70/75 resistance (a rough, 107.70/90 double bottom trigger)."