USD/JPY’s daily candle is currently suggestive of exhaustion - Scotiabank

Analysts at Scotiabank explained that  JPY made a full retracement of its Asian session gains. 

Key Quotes:

"Domestic yields have fallen in response to dovish comments from BoJ Deputy Governor Wakatabe and yield spreads appear to stabilizing."

"JPY’s daily candle is currently suggestive of exhaustion (JPY shooting star, USDJPY hammer) with a return back below 50 day MA resistance."

"The broader tone remains critical however, and risk reversals currently reflect a sizeable premium for protection against JPY strength vs. both the USD and EUR."