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Post-CPI Drop Being Steadily Erased Ahead of ECB

JPY
  • USD/JPY extending to the post-Fed gains to print new highs of 136.92 in recent trade. Rate's now narrowing in on the pre-CPI levels posted Tuesday at ~Y137.30 and a break above 137.97 would open the first real test at the 20-day EMA of 138.04.
  • Options activity is also working in favour of the pair today, with front-end risk reversals extending their corrective rally off early December lows to touch the best level in 4 weeks.
  • Little interest in USD/JPY topside for today's NY cut, but gets much more interesting Friday, with sizeable options at Y135.00($2.3bln), Y135.90-10($999mln), Y137.00($1.3bln) and Y140.00($2.0bln)
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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