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Technicals warn of further USD/JPY weakness - Scotiabank

FXStreet (Guatemala) - Camilla Sutton, CFA, CMT, Chief FX Strategist at Scotiabank noted that the JPY is strong.

Key Quotes:

"...Reacting to a spike in risk aversion caused by falling oil prices and other market developments".

"Fundamental data releases were second tier, with Eco watcher survey climbing to 45.2; money stock stable at 3.6% and machine tool orders falling to 33.8%."

"For the near‐term USD/JPY is vulnerable to risk aversion".

"Technicals continue to warn of USD/JPY downside risk, with 1.1630 the next level of support followed by the December low of 115.57."