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U.S. Equity Weakness Spills Over, Lending Support To Yen

JPY

The yen has caught a bid in early Tokyo trade, as underwhelming earnings reports from Meta and Spotify have inspired a sell-off in NASDAQ 100 e-minis, sending a risk-off impulse through G10 FX space.

  • USD/JPY deals -5 pips at Y114.41, losing altitude for the fifth day in a row. Further losses past yesterday's low of Y114.16 would open up Jan 24 low of Y113.47. Bulls set their sights on the 76.4% retracement of the Jan 4 - 24 downleg/Jan 28 high at Y115.67/68.
  • There is little of note on the local data docket today, outside of the final readings of Jibun Bank Services & Composite PMIs.

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