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Struggles To Move Through Key Resistance

DOLLAR-YEN

USD/JPY ground lower on Tuesday before dipping to fresh intraday lows as U.S. Pres Trump halted fiscal negotiations with the Democrats. The rate recovered some losses into the end of the day, but still finished worse off.

  • The BoJ released the text of Gov Kuroda's speech titled "COVID-19 and the Global Economy: Impact and Challenges - From Asia's Perspective". The Governor mostly revisited familiar talking points re: the economic aspects of the pandemic.
  • The rate trades at Y105.62, just a touch lower on the day. A break under Oct 2 low of Y104.94 would excite bears, shifting their focus to Sep 22 low of Y104.41. Bulls look for a rally through the 50-DMA/Sep 30 high/lower edge of the Ichimoku cloud, which form an important resistance area at Y105.77/80/85 re-tested yesterday. Such a move would give bulls a free hand to target Sep 8 high of Y106.38.
  • Japanese BoP current account balance & Eco Watchers Survey are due Thursday, with earnings/spending data coming up Friday.

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