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### POV: CAN'T STOP THE USD -............>

DOLLAR-YEN
DOLLAR-YEN: ### POV: CAN'T STOP THE USD
- Denuclearisation talks have further propelled the USD in recent sessions which
could see USDJPY look to challenge the key 110.00 area.
- The MNI FX Positioning Indicator shows USD sentiment has reached the highest
levels since May 2017.
- The DXY has broken above the 200-dma, gold has traded through the 100-dma to
6-week lows of 1308.40.
- MNI's Markets team highlighted global decoupling is underway and the USD can
rally further. The analysis piece notes that US GDP & Employment Cost Index data
last Friday brought further evidence of mounting price pressures, and bolstered
not just the case for Fed rate hikes, but also for USD outperformance going
forward.
- The MNI FX Technical Signal Monitor is currently showing outright USDJPY
bullish sentiment in the short/medium term.
RISK - The US jobs report is scheduled for release on Friday, a soft reading
could pare recent gains with the 100-dma providing near-term support at Y108.81.

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