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Corrective Pullback Extends On Initial Rengo Wage Demands

EURJPY

EUR/JPY is through the 20-day EMA and trades as low as Y161.39.

  • Next support at the 50-day EMA (Y161.00).
  • The technical trend condition in EUR/JPY remains bullish, however, a corrective cycle is in play, suggesting potential for a move lower near-term.
  • Initial wage demands from Japan’s Rengo union print at +5.85%, a 3-decade high.
  • Wage talks are a key pillar of discussions surrounding a BoJ rate hike.
  • Earlier, Japanese wage data topped exp., which supported the yen.
  • Recent source reports from several news outlets (including MNI) have pointed to the potential for a March BoJ hike.
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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