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Yen Loses Ground

JPY

USD/JPY staged a dynamic rebound yesterday, attacking the Y114.00 mark late doors. The rate's upswing was driven by a rally in U.S. Tsy yields, inspired by a beat in U.S. CPI report, which showed that inflation accelerated to a pace not seen in at least two decades.

  • USD/JPY has added 7 pips thus far and last sits at Y113.98. A clearance of Oct 20, 2021/Nov 6, 2017 highs of Y114.70/73 would allow bulls to take aim at Mar 10, 2017 high of Y115.51. Conversely, bears set their sights on Sep 30 high of Y112.08, a recent breakout level.
  • Mainichi reported that the gov't is planning to reinstate the "Go To" travel campaign in January or later, while Jiji noted that the programme could be resumed around February.
  • The local economic docket is virtually empty during the remainder of this week.

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