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MXN: MXN/JPY Losses Exceed 2.5% Post-BOJ, Cross Breaks Through 8.00 Handle

MXN
  • The post-BOJ rally in the yen has prompted a 2.5% sell-off for MXNJPY today, which has reached its lowest level since June 2023 and has now dropped an impressive ~12% from the July highs. 
  • Furthermore, today's move lower has resulted in the breach of the phycological 8.00 handle as well as the October 2023 lows. 
  • Given the yen is one of the main funding currencies for carry trades in LATAM, its rally over the past few weeks has led to a substantial retreat from bullish positions in the region.

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