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Free AccessUSD/JPY starts the week on the back......>
DOLLAR-YEN: USD/JPY starts the week on the back foot with Japan coming back from
its elongated New Year's holiday. Further escalation of U.S.-Iran tensions over
the weekend supports the yen, which tops the G10 pile. USD/JPY already operates
under Friday's lows, the worst levels since mid-Oct.
- The early move lower occurs after USD/JPY lost altitude on Friday following
the killing of a top Iranian military commander by U.S. military forces.
Aggressive rhetoric from both sides kept the risk-off mood alive and well.
- Over the weekend, U.S. Pres Trump threatened with a "disproportionate"
military response if Iran retaliates, while Tehran said that it will no longer
honour its commitment to limit uranium enrichment.
- With USD/JPY trading 25 pips lower at Y107.83, bears look for a break under
the 38.2% retracement of the Aug 26 - Dec 2 rally at Y107.72. The 50%
retracement of that move at Y107.10 provides the next support level below. Bulls
need a bounce above Y108.00 before targeting the 100-DMA at Y108.22.
- In Japan, the initial focus turns to final Jibun Bank m'fing PMI, due later
today. Earnings and spending figures are due Wednesday and Friday respectively.
To read the full story
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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.