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USD/JPY Sees Delayed Reaction To USD Weakness On Monday

JPY

After falling to the bottom of the G10 FX table on the risk rally ahead of NY hours on Monday, JPY played catch up when it came to the broad USD weakness (USD/CHF also traded in a similar fashion), even as the S&P 500 marched to a fresh all-time high. This resulted in USD/JPY moving from as high as Y110.15 down to Y109.65 during NY hours (the U.S.-Japan 10-Year yield spread also went out around lows as U.S. Tsys richened into the bell). The cross last deals at Y109.70, unchanged on the day, with yesterday's low intact. Expect broader themes and macro headlines to continue to dominate, with the local COVID & political situation in Japan having little impact thus far. The initial support lines come in the form of the Aug 18/19 & 16 lows (Y109.48/Y109.11), with the bear trigger located at the Aug 4 low (Y108.72). Meanwhile, initial resistance is seen at the Aug 13 high (Y110.46)

MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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