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USD/JPY Dragged, With MNI Exclusive Adding Weight

JPY
  • Having printed a fresh multi-month high during European hours at 140.93, the pullback in the pair following the tripartite meeting late in Asia continues, putting the pair as much as 110pips off the earlier session best, touching 139.79 at the low.
  • MNI's Policy exclusive adding further weight: 'MNI POLICY: Weaker Yen To Raise Pressure on BOH To Move On YCC' and helping aide the drift from ~Y140.20 to session lows.
  • Given the moves in spot, no surprise to see above-normal activity and volumes in JPY futures - currently sitting close to double the average for this time of day thanks to volume spikes at 0733BST (announcement of tripartite meeting) and 1003BST (first Kanda headlines).
  • For a pullback in the pair to take hold, spot needs to show below 139.24 - the 23.6% retracement of the mid-May upleg. The pair was primed for a fade off highs, with the 14-d RSI touching 73 at the end of last week - marking the pair as technically overbought for the first time in 2023.
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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