USD/JPY: not yet oversold - Scotiabank

Analysts at Scotiabank remain bearish on USD/JPY in the short term.

Key Quotes:

"Momentum signals are bearish and not yet oversold, DMI’s are confirming, and short-term MA’s are bearishly aligned."

"The ascending trend line drawn from the April-June closing lows has been broken and USDJPY is threatening the mid-109 area roughly corresponding to the ascending trend line drawn from the April-June intraday lows."

"A break would open up the risk of a push toward the June low around 108.80 and the April low just above 108."