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Heightened concern over the rapid........>

DOLLAR-YEN
DOLLAR-YEN: Heightened concern over the rapid spread of Covid-19 inspired
appetite for safe haven assets on Monday. The pathogen's spread outside mainland
China revived fears re: its economic toll, which were reflected in official
communique from a G20 FinMins' summit. USD/JPY edged lower initially, but ticked
back towards neutral levels thereafter. It eased off again into the European
morning and took a nosedive as U.S. equities crumbled.
- Kyodo reported that the gov't wants to finalise its policy plans re: virus
containment on Tuesday, following discussions with experts.
- Japanese markets reopen after a holiday-elongated weekend with USD/JPY sitting
+7 pips at Y110.80. A drop below the 23.6% retracement of the Aug 26 - Feb 20
rally & Monday's low, located at Y110.40 & Y110.33 respectively, would shift the
focus to the Jan 29 high of Y110.29, the previous breakout level. Conversely,
bulls need the rate to tear through Monday's peak at Y111.68, albeit signals
from momentum studies do not bode well for their cause.
- Looking further afield, we have Japanese industrial output, unemployment,
retail sales & Tokyo CPI coming up on Friday.

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