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Trump prompted a USD dump on Thursday,...>

DOLLAR-YEN
DOLLAR-YEN: Trump prompted a USD dump on Thursday, after the greenback had
rallied through much of the European session. The President stated his
discontent with rising interest rates, adding that a strong USD can make the
U.S. uncompetitive. The move was limited by a White House spokesperson
clarifying that Trump's views are well known and that he respects the
independence of the Fed, with a modest bounce observed in the USD.
- The initial headlines saw USD/JPY print a low of Y112.06, before the cross
experienced a modest rebound, last Y112.50, with no JPY reaction to the latest
round of Japanese CPI figures.
- This came after the cross touched a high of Y113.17 on the initial USD
strength that was observed on Thursday.
- Fresh 7-month highs in the cross lacked follow through with a bearish key day
reversal combined with daily studies correcting from overbought & daily momentum
divergence adding weight to the case for a correction back to 110.75. Bulls now
need a close above the July 18 low (Y112.69) to return pressure to Y113.24-74
where the 200-WMA, 2018 & Dec 2017 highs are located.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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