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JPY: USD/JPY Breaks Sub 141.70 on Hawkish BoJ Headlines

JPY

USD/JPY is testing August 5 lows, with the pair getting to fresh lows of 141.51. We have since stabilized, last near 141.95/00, still up 35% for the session in yen terms.. Headlines from BOJ board member Nakagawa's speech have crossed, which have a hawkish lent. A sustained break sub the 141.70 level would bring 140.82, the Jan 2 low into focus. 

Some of the standouts are: "*NAKAGAWA: SEES NO BIG CHANGE IN FUNDAMENTALS AFTER MARKET MOVES" - BBG
"*BOJ NAKAGAWA: NEED TO WATCH UPSIDE PRICE RISKS" - BBG 
"ACHIEVEMENT OF WAGE-INFLATION CYCLE IS IN SIGHT - [RTRS]"
"*BOJ NAKAGAWA: EVEN WITH HIKE FINCL CONDITIONS WOULD BE EASY" - BBG
"TO ADJUST DEGREE OF EASING IF OUTLOOK REALIZED" - BBG 

  • Helping at the margin is broader USD losses. Trump election odds are down a touch as the debate unfolds, Harris has firmed slightly. US equities futures are a little weaker. 
     

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