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Yen Benefits From Move Lower In Global Yields

JPY

Global core FI dynamics, with Gilts driving the moves on the day, have allowed JPY to ascend to the top of the G10 FX pile, with USD/JPY ~40 pips lower on the day at ~Y141.60 at typing (firmer than expected U.S. housing data has helped take the edge off the move). Initial technical resistance in the form of the 21 Nov ‘22 high (142.25) held to the pip before the pullback from session highs kicked in.

  • Plenty of sell-side names are wary of the general proximity to the Y145 “intervention danger zone” given the events witnessed at the tail end of ’22, although the lack of willingness re: the BoJ when it comes to further YCC tweaks/deploying monetary tightening continues to weigh on the JPY.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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