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Barclays see "a mounting risk of.........>

DOLLAR-YEN
DOLLAR-YEN: Barclays see "a mounting risk of USD/JPY revisiting the Y108 level
seen in mid-January amid perceptions of upside resistance at Y110, even though
already bearish sentiment suggests some risk of a further rally before turning
lower. Although a fading prospect of normalization by the BoJ noted above
implies some alleviation of JPY appreciation pressures, the drivers (uncertainty
in the global economy and a dovish outlook for Fed policy), amid a lack of
easing options for the BoJ, actually imply a greater downside risk for USD/JPY.
As for the Chinese economic slowdown risk, we believe high-beta AUD and EM
currencies are more exposed than the USD to downward pressure versus the JPY."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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