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USD/JPY had a ride in the risk...........>
DOLLAR-YEN: USD/JPY had a ride in the risk rollercoaster yesterday, finishing
the day 68 pips better off despite printing a fresh multi-month low early on.
The initial downswing was provoked by Iran's missile attack on Iraqi-U.S.
military bases, saw the rate bottom out at Y107.65. However, that risk-off move
was faded amid the lack of reported casualties or any violent escalation.
USD/JPY remained bid through the rest of the day as sentiment improved, with
U.S. Pres Trump's remarks read as a signal that tensions have eased, as he
expressed preference for economic rather than military pressure on Iran.
- As a result, USD/JPY returned onto the Y109.00 handle and currently trades at
Y109.16marginally higher on the day. Bulls eye the Dec 30 high of Y109.50 as the
initial resistance & a break here would open up the Y109.68-73 zone, which
repeatedly capped gains through Dec. Bears look for a fall below the nearby
50-DMA at Y108.96 towards the Dec 4 & 9 lows of Y108.43.
- Ex-Nissan chief Ghosn held his awaited presser, but refused to name any
specific members of Japanese gov't for an alleged plot to oust him.
- Japanese household spending will be published on Friday.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.