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USD/JPY Tumbles Again Upon Breach Of 50-DMA

JPY

Selling pressure hits USD/JPY afresh, sending the pair through the Y134.00 round figure support to the lowest point since June 17. When this is being typed, the pair deals at Y133.66, down 61 pips on the day.

  • In the absence of headline catalysts, the move seems driven by a breach of the 50-DMA, which may have inspired further position adjustment.
  • Note that this moving average helped limit losses on Thursday and provided support during the rate's corrective pullback in May.
  • There was talk of month-end flows applying some pressure to the yen earlier in the session, pushing USD/JPY slightly higher into the Tokyo fix, but those initial gains proved short-lived.

Fig. 1: USD/JPY

Source: MNI - Market News/Bloomberg

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