USD/JPY: techncials are still bearish below 50 dma- Scotiabank

Analysts at Scotiabank suggested that the USD/JPY short-term technicals are bearish.

"We had maintained a cautiously bullish stance since last week’s bearish outside reversal and our caution has been validated with Tuesday’s plunge to two week lows. USD/JPY had made a decisive break back below its 50 day MA (105.89), nearing its 21 day MA (103.90) for the first time since July 12th. Momentum signals are shifting quickly, softening their bullish bias. USD/JPY risk lies to the downside and we look to the June 24 close at 102.22 followed by the July 11 open at 100.43."