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Dips To 20-day EMA Supported

JPY

Yen finished Wednesday's down nearly 0.3% against the USD, but is well within recent ranges and volatility was lower compared to Tuesday's session. We currently track at 131.40, with post Asia close dips to 130.50/60 region supported. Most other G10 currencies also finished lower, although yen outperformed AUD at the margins.

  • USD/JPY is still wedged between the 20-day (130.65/70) and the 50-day (near 132.80) EMAs.
  • The currency outperformed a softer US cash Tsy yield backdrop through the US session, although this just reverses some of the resilience we saw through Tuesday's session. Currently USD/JPY levels don't look too misplaced relative to yield spreads with the US, at least on a short-term basis.
  • On the data front today, we have money stock data for Jan, along with investment flows (to Feb 3), while later on Tokyo office vacancies and machine tool orders for Jan print.

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