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Strengthens Below 110


The yen gained overnight after the greenback dropped on a decline in yields, USD weakness saw USD/JPY drop to 109.67 the lowest level since March 29, the pair languishes near the bottom of its range, last at 109.76. The pair remains beholden to moves in USD, the FOMC minutes release later on Wednesday will be watched for views on inflation and the labour market.

  • From a technical perspective USD/JPY has pulled back from recent highs, with prices solidifying a move below 110.00 Tuesday. The outlook though remains bullish following the recent trend extension and breach of a number of important short-term resistance levels. Attention is on a climb towards 111.30 next, Mar 26, 2020 high. Note that overbought conditions are still not impacting this trend and instead this continues to reinforce current sentiment. 108.41 is key support.
  • A limited local economic docket today, BoJ Rinban Ops are due at 0210BST/0910HKT, while Leading/Coincident Index will hit at 0600BST/1300HKT.

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