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Hawkish Fedspeak Delivers Blow Despite Gov Kuroda's Comments On Yen Weakness

JPY

The yen got only a temporary reprieve in Tuesday's Tokyo trade as BoJ Gov Kuroda frowned upon its "somewhat rapid" moves. Resultant downtick in USD/JPY was unwound into the London open, before hawkish Fedspeak fuelled a further rally into the WMR fix and beyond, reminding participants about the Fed's growing policy divergence with the BoJ.

  • The pair last operates at Y123.59, virtually unchanged on the day. Topside focus remains on Y125.09, a cycle peak lodged on Mar 28. Bears look for a retreat under Mar 31 low of Y121.28.
  • Japan's economic calendar is virtually empty today, but Friday will see the release of BoP current account balance & Eco Watchers Survey.

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