USD/JPY sideways range trading persists - Scotiabank

According to Scotiabank analysts, USD/JPY technicals remain neutral to bearish after two failures at 114.80, which leaves a potential double top on the short-term chart.

Key Quotes

“Japanese FX reserves shrank modestly in November and the Leading Indicator rose to 101.0 in October (from 100.3). BoJ Deputy Governor Iwata said the BoJ will continue its asset purchase programme as it seeks to reach its 2% inflation target.”

“USDJPY short-term technicals: neutral/bearish—Sideways range trading persists in USDJPY; two failures at 114.80 leaves a potential double top on the short-term chart. A downside break under the intervening low at 112.90 would trigger a correction lower to the upper 110’s. Japan releases trade and final Q3 GDP data tonight.”