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JPY Crosses Counter USD/JPY Recovery Efforts.

JPY
MNI (London)
  • Headline in the Nikkei Asian Review that PM Suga had told the finance ministry to make sure USD/JPY did not cross the Y100 mark prompted demand into Tokyo that saw USD/JPY touch Y103.56.
  • However, remarks were made back in November, noting that Japanese exporters need rate to hold above Y100.20 to generate a profit.
  • However, JPY demand via crosses acted to counter this early move and helped to press rate down to Y103.25 before rate recovered to Y103.50 in a general paring of USD shorts, helped in part by the US fiscal stimulus agreement in the US.
  • Rate had eased to Y103.42 into early Europe.
  • Support seen at Y103.25/20 ahead of Y103.00, this latter level holding the strikes of a total of $3bln USD puts Mon-Tue-Wed, which should add to protective buying ahead. Resistance Y103.50/60.
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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