Analysts at Scotiabank noted the current conditions surrounding USD/JPY. Key Quotes: "Calmer markets (despite heavy losses for Chinese stocks) have allowed the JPY to slip lower so far today. BoJ officials continue to downplay the idea that they are chasing a weaker exchange rate. BoJ Gov. Kuroda stated that monetary easing is not aimed at weakening the yen while Governor Kiuchi said intervention is an option if the markets become volatile (implies monetary officials are not necessarily concerned by specific levels)." "Two major rejections of the 111.00/10 area and a break above short-term trend resistance at 111.56 following a bullish “hammer” signal yesterday suggest that near-term bear pressure on USD/JPY is reversing. USDJPY gains will likely accelerate sharply above 114.50. " For more information, read our latest forex news.