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USD/JPY operates at Y108.38,.............>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY operates at Y108.38, marginally above neutral levels. Over
the weekend, the ruling LDP party's policy chief Kishida said that "there will
definitely be impact on the economy" from the novel coronavirus.
- The rate fell 61 pips Friday, with the sell-off accelerating into the WMR fix.
Worries re: coronavirus continued to rattle markets, inspiring risk aversion
that manifested in a sharp sell-off in U.S. equities. JPY benefited from safe
haven demand, while month-end flows pressured USD.
- A breach of Friday's low of Y108.31 would draw bearish attention to the 38.2%
retracement of the Aug 26 - Jan 17 rally at Y108.06. Bulls need a clean break
above the Y108.42 200-DMA before setting their sights on the 100-DMA at Y108.76,
which gave way on Friday.
- Final Jibun Bank PMI readings (today) as well as speeches from BoJ's Wakatabe
(Wednesday) and Masai (Thursday) take focus from here.

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