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USD/JPY cratered Thursday as risk........>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY cratered Thursday as risk appetite took a beating, driving
European & U.S. equities lower. The coronavirus epidemic remained front and
centre, with California's declaration of a state of emergency sparking the
initial risk aversion. Locally, the yen drew support from a Nikkei report re:
cancellation of Seven & I's $22bn deal to acquire Marathon's Speedway gas
stations. USD/JPY took out a key support level at Y106.48 & showed at levels not
seen since early Sep.
- Worth re-flagging y'day's talk of GIPF's plans to boost weighting in foreign
bonds that applied some pressure to JPY at the start to the session.
- Our BoJ Insight piece notes that the Bank could take action this month.
- Japanese earnings & spending data from this morning was better than exp., but
JPY was unfazed. USD/JPY last deals +5 pips at Y106.21. Thursday's low of
Y105.97 is in sight, a break here would expose the Sep 3 low of Y105.74. Bulls
look for a recovery of Thursday's peak at Y107.74.
- Next week, the focus in Japan turns to monthly BoP data, final Q4 GDP & Eco
Watchers Survey (Monday), flash machine tool orders (Tuesday) & PPI (Thursday)

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