USD/JPY and EUR/JPY downside opening up? - Scotiabank

Analysts at Scotiabank noted that JPY up from Wednesday’s close and has been strengthening in tandem with most of the G10 currencies. 

Key Quotes:

"Local markets are closed for the remainder of the week and there are no major domestic releases scheduled ahead of next Wednesday’s labor cash earnings data."

"The stabilization in yield spreads is offering modest JPY support and may provide for near-term consolidation."

"Technically, USD/JPY is attempting to complete an ‘evening star’ candle formation, typically seen as a bearish reversal signal."

"EUR/JPY is also weak and extending its recent bear run through the 50 day MA (131.43) with limited support ahead of 130."