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MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
MEXICO
MXNJPY Breaking Multiple Resistance Points
- USDJPY is continuing its upward trajectory following last week’s significant break of 116.35 and impressive three big figure extension in just over a week.
- As noted, the Mexican Peso has traded resiliently with the latest bounce in equities spurring USDMXN through some notable short-term supports and signalling scope for a more bullish technical MXN outlook.
- MXNJPY has risen a further 0.77% on Friday and is currently over 8% off last week’s lows of 5.3773. Over the past couple of sessions the pair has broken a trendline across the 2021 highs and most recently has breached the downtrend, drawn from the 2018 highs of 6.1633.
- Last week saw multiple long USDJPY trade recommendations using 120 as an initial target, however, given the 2015 highs reside above 125, further JPY weakness may be in the pipeline.
- The persistent core inflation problem in Mexico bolsters the likelihood of Banxico maintaining the 50bp hiking pace at next Thursday’s meeting, especially given the latest minutes highlighted the committee discussing a 75bp hike.
- Additionally, the Fed’s more hawkish dot plot and previous rhetoric from the Mexican Central Bank regarding mirroring the Fed’s actions should keep Banxico on the offensive and in turn supporting MXN.
- The initial target in focus for MXNJPY will be 6.0124, representing the pre-pandemic 2020 highs.
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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