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Renewed Safe Haven Bid Supports Yen

JPY

USD/JPY traded sideways Wednesday, with Japanese markets shut in observance of a public holiday, as geopolitical matters dominated. The rate has shed 12 pips this morning and last sits at Y114.88 amid continued escalation in tensions surrounding the Russo-Ukrainian border, with fears over potential for a Russian invasion resurfacing.

  • Bears look for a sell-off past Feb 22 low of Y114.50 before targeting Feb 2 low of Y114.16. On the flip side, a jump above Feb 15 high of Y115.87 would bring Feb 10/Jan 4 highs of Y116.34/35 into view.
  • Locally, a parliamentary testimony from BoJ Gov Kuroda (today) and the release of Tokyo CPI (Friday) will take focus during the remainder of this week.

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