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USD/JPY has ticked away from lows but....>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY has ticked away from lows but remains on the back foot amid
a broader flight to safety. The rate lost ground in early trade in reaction to
news flow from over the weekend, centring around the Covid-19 epidemic. Case
counts in Italy & South Korea soared markedly, while China's Hubei province
warned that the incubation period may exceed the previously estimated 14 days.
In addition, the off'l communique of G20 FinMins' conclave highlighted downside
risks from the Covid-19 outbreak. As a reminder, Japanese mkts are shut today.
- BoJ Gov Kuroda poured cold water on speculations that JPY may be losing its
allure as a safe haven asset. He attributed the recent JPY softening to moves in
USD rather than any fundamental changes. Kuroda pledged readiness to act if
needed to mitigate the impact of Covid-19 on domestic economy.
- USD/JPY trades -10 pips at Y111.50. A deeper retreat, under the Y111.00 mark,
would put the 23.6% retracement of the Aug 26 - Feb 20 rally in focus. Bulls
look for a rebound above the Feb 20 multi-month high of Y112.23.
- Looking into the Japanese calendar, the focus this week turns to industrial
output, unemployment, retail sales & Tokyo CPI, all due on Friday.

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