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USD/JPY Steady After Further Correction of Its Recent Bounce

DOLLAR-YEN

USD/JPY ground lower yesterday, as participants shied away from safe haven FX and sold the greenback across the board. With both sides of the pair finishing the day near the bottom of the G10 scoreboard, USD/JPY shed a handful of pips.

  • The Nikkei reported that Japan's Health Ministryis moving to secure at least 100mn doses of potential Covid-19 vaccine developed by AstraZeneca.
  • Also from the Nikkei: "U.S. Pres Trump's new envoy to Tokyo wants to advance the bilateral trade deal to phase two".
  • USD/JPY trades flat at Y105.60 at typing. A move through yesterday's low of Y105.32 would draw attention to Jul 31 low of Y104.19. Conversely, bulls look for a clearance of Aug 3 high of Y106.47 before taking aim at the upper 1.0% 10-DMA envelope at Y106.55.
  • Japanese earnings/spending data is due Friday.

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