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Focus on Fed Powell for Direction

DOLLAR-YEN
MNI (London)

Wednesday's extended drift lower through the NY session (off an early NY high of Y106.46) extended to Y105.96 ahead of the close. Selling continued into the Asia session, pressed rate to Y105.81 where traders reported decent demand met on approach to the Y105.80 level. Demand into the Tokyo fix provided the lift that took rate back to Y106.08 before momentum faded and eased off to Y105.93. Fresh demand has emerged into the European open that has edged rate to Y106.06 but momentum not inspiring. Position adjustments ahead of this afternoon's appearance by Fed Powell at the Jackson Hole Symposium(1410BST) said to be influencing. Month-end models have suggested neutral flows. Today's value being month-end Monday could prompt some US corporate USD demand. Support seen from Y105.90, strengthening toward Y105.80 A break here to expose the Aug24 low of Y105.69 ahead of Y105.50/40. Resistance Y106.10 ahead of Y106.50/60.

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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