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USD/JPY has cratered from the off as.....>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY has cratered from the off as the spreading coronavirus
epidemic, sharp moves in crude oil mkts & geopolitics have prompted participants
to hunt for safety. Developments on the coronavirus front, including a >50%
surge in the number of fatalities declared by Italy, have pummelled risk
appetite. Elsewhere, BBG reported that Saudi Arabia has decided to boost crude
output & slash prices, which inspired a plunge in oil prices at the open.
Separately, reports re: North Korea's new missile tests have crossed the wires.
- The rate trades -1.51 fig. at Y103.88, after showing as low as at Y103.53, the
worst level since 2016. Bears look for a deeper sell-off, towards the lower 3.0%
Bollinger band at Y102.79. Bulls look to recover the Aug 26 low of Y104.46.
- This comes after USD/JPY slid Friday amid continued demand for safe haven
assets, as participants assessed the global spread of Covid-19.
- Our latest MNI POLICY piece noted that if USD/JPY falls towards JPY100, the
BoJ could hold an extraordinary meeting or bring the Mar 18-19 one forward.
- 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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