Forex Flash: USD/JPY reaches head and shoulder reversal target on the week – TD Securities

TD Securities analysts point to the JPY as a big mover in the Asian session: "Speculation that the new Japanese PM Abe will appoint a new BoJ Governor more aggressive on easing measures was the main impetus, but disappointing jobless data and household spending figures did not help the tone", wrote analysts Shaun Osborne and Greg Moore, pointing to a USD/JPY at fresh highs since 2010.

"The impressively sharp move in USD/JPY suggests to us that there is plenty of potential for a decent pullback, and we have pointed out the potential over the past few weeks", they said, adding that the pair has reached the head and shoulders reversal target on the weekly charts (an impressive feat for only two months), "which to us seems to be a level to get a bit more skeptical about".