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USD/JPY Clears to New Multi-Month Highs, Tops YTD Level

JPY
  • Latest upside across USD/JPY puts pair at new highs and briefly tops the resistance mentioned a handful of times today at Y150.89 - clearing the path for a test on last November's highs at 151.91 a little further out - and levels that will likely re-ignite intervention speculation from the Japanese authorities.
  • Move in currency markets coincides with resumed gains for equities, as the e-mini S&P sees buying interest up to yesterday's highs at 5,240.25.
  • We again note the downside pressure on the front-end of the USD/JPY vol curve - highly correlated with JPY downside: USD/JPY 3m implied vols are now through the YTD lows to print levels last seen in March 2022.

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