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Risk-off trade in Asia, prompted by......>

DOLLAR-YEN
MNI (London)
DOLLAR-YEN: Risk-off trade in Asia, prompted by ongoing political concerns over
Italy( with Spain seen bubbling away in the back ground), saw EUR/JPY pressed to
fresh 2018 lows of Y126.52, the move providing the weight for USD/JPY to take
out support at Y109.14/13 before it found a base at Y108.92. Rate since was able
to recover back above Y109.00, trading around Y109.09 at writing. EUR/JPY
recovery has been slower but currently looks to be clawing its way back toward
Y127.00. A few centres closed in Asia made for slightly thinner than usual
markets in that time zone. Markets await the return of London and NY after their
long weekends. Traders note $1.18bn of Y108.80/90 strike options roll off at
today's NY cut which could help to support the rate, a move below to expose the
May4 low at Y108.65.Resistance Y109.50/60. Little in the way of tier-1 data
today, headline reacts to provide the main directional drivers.  
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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