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JPY: JPY Selling in the Crosses Adds to Upside Pressure on USD/JPY

JPY
  • While the post-Powell greenback strength looks fleeting against the EUR, CAD and others - USD/JPY is inching to a new daily high, and narrowing the gap with 161.40 - the Friday high. 
  • Further progress through here will confirm the pullback off the multi-decade high as corrective in nature, and bring new highs, the uptrend drawn off the early June low, and Japanese intervention back into question. 
  • JPY selling in the crosses is helping add to the move, and a further 10 pips or so in EUR/JPY would mark new highs and add extra pressure to the JPY trade-weighted index. 

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