Scotiabank: JPY Showing Signs of Bullish Reversal

The Japanese Yen (JPY) is demonstrating a strong performance, rising 0.4% against the US Dollar (USD) and outperforming all G10 currencies as the week concludes, as reported by Scotiabank’s Chief FX Strategists, Shaun Osborne and Eric Theoret. This bullish reversal follows intervention threats from Finance Minister Katayama. Recent economic data, including better-than-expected PMIs and national CPI at 3.0% y/y, coupled with robust October trade figures (strong exports and surprising imports indicating domestic demand resilience), are supporting the JPY. While USD/JPY technicals remain bullish, the RSI has retreated from overbought levels (above 70) after testing resistance at 157.50, suggesting a potential pause in its rally.