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Y111.00 Remains Level to Break for Upside Progress

JPY
MNI (London)
  • General USD demand in early NY Monday (month-end value US corporate USD demand cited) saw rate push up to Y110.97 before meeting decent headwind resistance ahead of Y111.00.
  • Rate retreated through the 1600BST fix to Y110.50 before closing the day at Y110.62.
  • USD/JPY touched a high of Y110.65 at the Asia open before it eased to a low of Y110.45 as JPY demand was seen at the Tokyo fix, with some risk aversion also added into the mix.
  • However, rate recovered to Y110.59 ahead of the Europe open.
  • Support Y110.45/40, a break to open a deeper move toward Y110.25 ahead of Y110.10/00. Resistance remains into Y111.00, ahead of recently posted YTD high at Y111.12(June24). Above here to expose Y111.50.
  • MNI Techs: USDJPY dips are likely corrective. The pair traded higher last week and again delivered fresh 2021 highs following the print above Y110.97, Mar 31 high. This cements the uptrend, maintaining a bullish price sequence of higher highs and higher lows. Attention is on 111.30/64, the Mar 26, 2020 high and 1.0% 10-dma envelope. Initial key support is unchanged at 109.72, Jun 21 low. A break of this level is required to signal a top.
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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