USD/JPY: approaching the 21 DMA - Scotiabank

FXStreet (Guatemala) - Analysts at Scotiabank noted the current strength in the Yen but suggest it is limited while USD/JPY heads towards 21 DMA.

Key Quotes:

"We maintain a forecast of fundamentally-driven JPY weakness (USD/JPY) on the back of relative central bank policy however we acknowledge the potential for short-lived JPY gains in periods of risk aversion.

"USD/JPY has broken below its 9 day MA (122.95), on approach of the 21 day MA (122.26). Momentum indicators hint to a shift in the balance of risks, and trend signals are providing confirmation."