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Y109.90/110.10 Remains Upside Hurdle

JPY
MNI (London)
  • Friday's USD recovery, seen more on positioning ahead of the weekend and this week's FOMC, saw USD/JPY push up to Y109.84 before it eased to Y109.65 ahead of the close.
  • Rate marked an early low in Asia of Y109.62 before it picked up demand interest in Tokyo, traders suggesting this could have been prompted by support at G7 for the Tokyo Olympics to begin next month, the rate edging to Y109.83 before momentum waned and it eased off to Y109.70 into Europe.
  • Resistance remains at Y109.90-110.10, a break to boost upside potential as well as exposing Y110.33 (Jun04 high) ahead of Y110.55(Apr06 high).
  • Support now seen at Y109.50/40, stronger around Y109.20.
  • MNI Techs: USDJPY has managed to remain above support at 109.19 and the pair continues to consolidate. The sharp sell-off on Jun 4 and 7 resulted in a print below former support at 109.33, Jun 1 low. The move dents the bullish theme and a deeper sell-off would expose 108.56, May 25 low. On the upside, a recovery would instead refocus attention on 110.33, Jun 4 high where a break would reinstate the uptrend and open this year's 110.97 high from Mar 31.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com

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