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Holds Back Above Y104.00, But Upside Progress Faces Headwinds(reposted)

JPY
MNI (London)
  • Break below Y103.70/65 Monday saw rate pressed to an extended low of Y103.51before it met support into Y103.50.
  • Traders noted that support was strengthened with the rising support line, off the Mar09 low of Y101.19 coming through at Y103.48 (today at Y103.49).
  • General USD demand was seen into the 1600GMT fix which saw USD/JPY bounce back to Y104.10, holding above Y104.00 through to the close.
  • Goto-bi day demand edged rate to Y104.15 before it settled around Y104.10into Europe.
  • Asian traders have mentioned recently that both IMM and leveraged accounts have been adding to short USD/JPY positions and likely to fade any recovery rallies.
  • Talk that support back in place at Y103.70/65, stronger at Y103.50.Resistance Y104.15/20, Y104.50/60.
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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