USD/JPY: risk-off supporting Yen, but for how long?

FXStreet (Guatemala) - USD/JPY is down to the test the 100 sma on the hourly chart after being capped on the BoJ rally last month at the 121.68 high.

USD/JPY has been in a steady drift to the downside since meeting those highs of late and risk is supporting the Yen as we progress through the week. Oil is the major factor, falling over %5 and below $30WTI and stocks are in pursuit, also having a terrible day on Wall Street. However, despite this downside, analysts at Scotiabank have stuck to a bullish fundamental case for USD/JPY:

USD/JPY: fundamentals remain bullish - Scotiabank

USD/JPY levels

Technically, Karen Jones, chief analyst at Commerzbank explained that USD/JPY has halted just ahead of the 78.6% Fibonacci retracement at 121.96, where they have their take profit and they would at least tighten up stops and consider exiting the position. "Directly above the market resistance intensifies and we find the 123.77 November high, the 125.28 at August high and the 125.86 June high. We also note the 13 count on the 240 minute chart."