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CAD/JPY's Faltered Uptrend in Focus Pre-BoC

JPY
  • In sync with the intraday USD weakness elsewhere, USD/JPY has been offered across the morning, and is extending the move into the NY crossover, resulting in a 147.27 print for USD/JPY. Unlike GBP/USD, however, the pair is yet to test yesterday's 146.99 post-BoJ low, which marks the next level of note across US hours.
  • CAD/JPY could be worth watching as the cross failed to extend the Dec-Jan uptrend after the BoJ, as the YTD high of 110.41 holds for now. The BoC decision due later today (at earlier time of 1445GMT/0945ET) will be in focus, and in particular any communications surrounding the recent resurgence in its preferred core inflation metrics as “bumps along the way” in a path back towards the 2% inflation target.
  • JPY futures are seeing decent enough activity so far Wednesday, however are failing to match the above-average volumes noted after Tuesday's BoJ, with JPY activity around 10% below the rolling average for this time of day.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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