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Loses Altitude Amid Defensive Feel

DOLLAR-YEN

USD/JPY slumped Tuesday as risk appetite soured on the back of a combination of familiar broader-picture risks, a slump in oil prices and another tech-led rout at Wall Street. With Brexit jitters and U.S. decision to sanction some Xinjiang firms over human rights concerns, AstraZeneca halted its Covid-19 vaccine trials after detecting an unexplained illness in one of the participants.

  • The rate has extended losses this morning and last deals -5 pips at Y105.99. A move through Aug 28 low of Y105.20 is needed to clear the way to Aug 19 low of Y105.10. Conversely, a jump above Sep 3 high of Y106.55 would open up Aug 28/13 highs of Y106.95/106.05.
  • On the international trade front, Japan imposed anti-dumping duties on some Chinese chemical products after a governmental investigation determined that they are priced below market value.
  • Japanese flash machine tool orders are due later today. Core machine orders will be published on Thursday, while PPI & BSI Survey come out on Friday.

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