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Dovish FOMC acted to press USD/JPY to....>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: Dovish FOMC acted to press USD/JPY to a low Thursday of Y107.21 with
recovery efforts capped below Y107.40 through to the close, as well as early
Asia. A NY Times report that US Trump had approved a retaliatory strike against
Iran (following the shooting down of a US drone) prompted a sharp risk off move
which dropped USD/JPY to an extended low of Y107.05. Reports that Trump had
pulled back from this move allowed for an eventual recovery, the rate edging to
Y107.33 in early Europe. Support has been suggested into Y107.00, traders aware
that $1.44bln of option strikes roll off at today's NY cut between Y107.00-05,
with market also wary of any BOJ rhetoric concerning the recent strengthening in
the JPY. However, a break of Y107.00 to expose Y106.50. Resistance Y107.40/50.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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