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Late Wednesday BNP Paribas noted that....>

DOLLAR-YEN
DOLLAR-YEN: Late Wednesday BNP Paribas noted that they are adding a short
position in USD/JPY from 108.45, targeting Y104.00 with a stop set at Y110.00.
- They reason that "the Fed Chair's reiteration of June's dovish message in
today's testimony is a good potential catalyst for a resumption of the USD
weakness we saw last month. We expect the USD to lose ground heading into a
likely
25bp rate cut in July and further easing in September. USD/JPY entry levels are
attractive after the pair's rally of
the past two weeks, with compressing yield differentials across the G10 expected
to support the JPY broadly."
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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