USD/JPY: headed to the upper 110's? - Scotiabank

In respect to USD/JPY, analysts at Scotiabank explained that stocks are positive and US yields are rising, widening US-Japan 10Y spreads from levels seen late last week.

Key Quotes:

"Positive risk appetite and more adverse spreads is a toxic combination for the JPY. Although geo-political risks remain obvious, the near-term trajectory for the USD looks to be higher."

"USD/JPY short-term technicals: bullish—Strong gains from sub-108 levels yesterday and additional gains today suggest a strong technical rebound to the upper 110s (late Aug high)."