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Steady Start, BOJ Due Tomorrow

JPY

The Yen has opened dealing little changed from Friday's closing levels in a steady start on Monday, ranges are narrow with little follow through on moves. USD/JPY sits a touch above the ¥142 handle.

  • On Friday USD/JPY see-sawed around the ¥142 handle in narrow ranges for the most part. Broader USD trends dominated flows and the pair remained well within recent ranges.
  • A sharp sell-off in USDJPY Wednesday and a continuation lower Thursday,reinforces current bearish conditions. The pair has cleared support at ¥141.71, the Dec 7 low, to confirm a resumption of the downtrend that started on Nov 13. Support comes in at ¥140.71 76.4% of the Jul 14 - Nov 13 bull run. Resistance is at ¥142.90 High Dec 14.
  • The highlight of this weeks docket is the latest monetary policy decision from the BOJ, which is due tomorrow. The median forecast of the Bloomberg survey shows no change to policy expected. Also due this week is November's Trade Balance and National CPI.

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