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KRWJPY is testing support at its range...>

KOREAN WON
KOREAN WON: KRWJPY is testing support at its range lows as USDJPY trades at the
112 level. A break below 9.80 in KRWJPY would mark a bearish break below the
recent range as well as uptrend support from the Aug lows.
- Real bond yield spreads between Korea and Japan have been pointing to a large
downside move for several months as the nominal yield spread has narrowed even
as inflation expectations have risen faster in Korea.
- While any recovery in risk appetite would likely trigger a bounce in KRWJPY,
it would take a significant shift higher in Korean rates to justify an uptrend
in the pair given historical correlations. 

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