USD/JPY: in neutral between key support/resistance - Scotia

FXStreet (Guatemala) - Eric Theoret, CFA, CMT Currency Strategist at Scotiabank explained that USD/JPY is up a modest 0.2%, its gains resulting from a deterioration in the broader tone with modest, short-lived weakness driven by the release of disappointing domestic industrial production data.

Key Quotes:

"Near term risk for JPY lies with the BoJ meeting as we consider the potential for a shift in the statement tone given the material developments that have taken place since the last meeting on August 7th.

USDJPY short-term technicals: neutral—momentum indicators are close to neutral and bearish trend indicators are softening. Recent movement has been limited between the short-term MA’s with support at the 9 day MA (120.06) and resistance at the 21 day MA (120.91). The 200 day MA (120.82) has proven to be an important near term level of resistance on a closing basis."