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Holds Above Support at Y104.40.

JPY
MNI (London)
  • Reported support between Y104.50/40 cushioned the early downside pressure in Europe Wednesday, the rate marking a low of Y104.41 before bouncing back to Y104.84.
  • Rate retained a firm feel into NY until the release of a softer than forecast US CPI which pressed rate down to Y104.54.
  • Rate recovered to Y104.71 then slowly drifted off to Y104.59 into the close.
  • Support remains into Y104.40, a break to expose Y104.26/22(61.8% Y103.33-105.77/Jan29 low) ahead of Y103.90(76.4% Y103.33-105.77).
  • Resistance Y104.84 ahead of Y104.95/105.00, with Y105.15/25 behind.
  • Tokyo holiday today. Lunar New Year holidays begin in Asian centres from today.
  • MNI Techs: USDJPY remains at the lower end of this week's range following the pullback from 105.77 Feb 5 high. The move lower is likely a correction following recent bullish developments. On Jan 27, the pair cleared a bear channel resistance drawn off the Mar 2020 high and resistance at 104.40 gave way on Jan 28, confirming a resumption of the uptrend from Jan 6. The support zone to watch is 104.49/34, the 20-day EMA and a trendline drawn off the Jan 6 low.
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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