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USD/JPY Run Higher Tilts RSI to Highest Since October

JPY
  • With gold still under pressure and US Treasury yields holding close to session highs post-consumer confidence, new home sales data, the greenback is on the front foot across the board.
  • This is now being most acutely felt against the JPY, with USD/JPY extending the earlier rally to top Y144.00 to print new cycle highs.
  • Pair had been more subdued earlier this week after vocal interjections from Matsuno and Kanda on Sunday/Monday, as they refused to rule out any options to ensure currencies move inline with economic fundamentals.
  • Post-data JPY sales have put JPY futures volumes broadly inline with average for this time of day, making good a quieter start to the Tuesday session. Spot USDJPY now narrowing in on 144.64, the 2.0% 10-dma envelope and 144.40 - the 1.382 proj of the Jan 16 - Mar 8 - Mar 24 price swing.
  • Technically, USDJPY is now the most overbought (as per the 14-day RSI) since mid-October.

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