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USD/JPY Trades Above Y120

JPY

USD/JPY trades as high at Y120.07 into the Tokyo fix, printing above Y120.00 for the first time since early ’16 in the process, before backing off to trade below the figure once again. Note that several market participants have flagged broken barrier options at the Y120.00 level. BoJ policy divergence vs. wider developed market central banks, Japan’s notable reliance on energy imports (and the surge in related prices in recent weeks, resulting in diminished terms of trade for Japan) and the well-documented cheapening in U.S. Tsys (higher Tsy yields) have been the dominant inputs into price action for the cross during early ’22. Note that beyond the aforementioned early session high (Y120.07) bulls will target resistance in the form of the Feb 2 ’16 high (Y121.04).

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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