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Yen Can't Sustain 134 Handle, But Still Third Best G10 Performer

JPY

Yen was the third best performer in the G10 space through Tuesday's session, trailing only AUD and NOK. USD/JPY sits at 135.60/65 currently, down a little over 1.5% for the past 24 hours, although post US CPI lows came in at 134.66. The yen followed US cash Tsy 10yr yields closely through the course of NY trading.

  • On the downside, the bear trigger is unchanged at 133.63 (Dec 2 low). A break would resume the technical downtrend. Recent highs close to 138.00 should offer resistance on the topside.
  • Outside of the fallout from the weaker US CPI print, Japan data is also on tap today. Core machinery orders for October are forecast at +1.8% m/m, versus -4.6% prior.
  • The Q4 Tankan survey is also due, with softer conditions expected in the manufacturing space (6 outlook expected, versus 9 previously for large firms), while non-manufacturing is expected to improve (+15 outlook versus +11 for large firms).

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