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Whipsaw Price Action Fails to Elicit Volumes Akin to Weds CPI

JPY
  • Whipsaw price action across JPY following the suite of US data, with the initial down-move in USD/JPY swiftly reversed a few minutes out from the release - partially driven by the hawkish read of import/export price indices.
  • The volume spikes at 1330BST/0830ET and 1337BST/0837ET, while significant, pale in comparison to the activity around yesterday's CPI print (CPI triggered cumulative trade of ~20k contracts vs. today's ~7.5k), which may suggest more moderate conviction on the move.
  • 15min candle chart shows horizontal resistance seen into 155.50, a break above which opens 155.54, the 61.8% retracement of the downleg posted off the Tuesday high. 156.74 is more key for bulls, a break above which marks a resumption of the bounce off the post-intervention low.

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