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USD/JPY Back From Wednesday’s Peak

JPY

USD/JPY flat in early Asia trade, last dealing just above Y114.10 after a pullback from Wednesday’s peak as U.S. Tsys found a base in NY hours.

  • Note that the 61.8% retracement of the Nov 24-30 downleg (Y114.38) capped USD/JPY on Wednesday and acts as initial technical resistance after the breach of the Dec 15 high. Any break above that initial resistance would switch focus to the 76.4% retracement of the same downleg (Y114.81). Conversely, initial support comes in at the Dec 17 low (Y113.14).
  • Thursday brings $1bn+ of option expiries at both Y113.70-80 & Y115.00 (come the 10AM NY cut), which could bookend price action if the intraday range widens out a little (although that isn’t expected in pre-Christmas trade).
  • An address from BoJ Governor Kuroda headlines the Japanese docket on Thursday. Further afield, U.S. PCE & durable goods data will cross during NY hours.
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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