USD/JPY: neutral bearish between 114.80 and 112.90 - Scotiabank

Analysts at Scotiabank explained that the domestic data releases for Japan were roundly disappointing.

Key Quotes:

"Japan Q3 GDP was revised lower to 0.3%, below the preliminary estimate of a 0.5% gain. Revisions suggest the economy was on a more solid footing earlier n the year but the Q3 data were disappointing."

"The October trade balance revealed a lower than expected (and narrower relative to Sep) surplus of JPY587bn."

"USD/JPY short-term technicals: neutral/bearish—Sideways trading persists in USD/JPY, suggesting the Nov/Dec rally has stabilized; weekly price patterns suggest a loss of momentum through late Nov/early Dec after three solid weeks’ worth of gains. We continue to see resistance at 114.80 and key, short-term support at 112.90."