Forex Flash: USD/JPY with best reversal signal now – TD Securities

The reason behind JPY's rebound today was Japan's Finance Minister comment that the government wasn't antecipating an exchange rate depreciation at such rapid pace. "It’s unclear whether these headlines were taken out of context— especially considering the seemingly conflicting comments from other Japanese officials recently—but it could also be a case of managing the reception to Japanese policy action at the upcoming G20 meeting", wrote analysts Shaun Osborne, adding that a correction lower was expected for several weeks now.

"On the charts for USD/JPY, side by side ‘doji’ candle days, followed by an overnight selloff is the best reversal signal we’ve seen in since the this run higher began", they continued, pointing to a test of the low 90 area initially as very achievable in the coming week.