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Recovery In U.S. Equities & Move Higher In Tsy Yields Counters USD/JPY Selling

JPY

The uptick in U.S. Tsy yields and recovery in U.S. equities limit any downside in USD/JPY, with participants assessing cross-market inputs against the persistent carry/monetary-policy based JPY headwinds and worry re: official intervention in levels not too far north of prevailing prices, with spot last dealing around Y144.50. That leaves USD/JPY within a relatively confined range, little changed on the day with trend needles still pointing north. Bullish focus is on Y145.66, which represents a Fibonacci projection, with some protection coming in the form of the June 30 high at Y145.07. Also note that conditions remain the most overbought (as per the 14-day RSI) since mid-October. Key short-term support is at 142.09, the former bull channel top.

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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