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USDJPY continues to recover after yesterday's...>

YEN
YEN: USDJPY continues to recover after yesterday's false break below 112, with
the pair bouncing off the 50-dma to trade at 112.25 currently. Yesterday's high
of 112.53 is the first hurdle to overcome before challenging the 21-dma at
112.95. 
- Rising US real yields thanks largely to the drop in breakevens has put further
upside pressure on real yield spreads, supporting further USDJPY upside.
- The recovery in yen crosses is positive for USDJPY with EURJPY reclaiming its
50-dma to stabilise the picture. AUDJPY looks to retest the 80 level on the
upside as bears were unable to take out the Sep lows yesterday. 

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