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Yen Remains Within Familiar Range, Local Data & BoJ Summary Of Opinions Eyed

JPY

The release of U.S. CPI data on Wednesday fuelled volatility in USD crosses, including USD/JPY. The rate reversed earlier weakness as U.S. consumer inflation figures topped expectations. USD/JPY ran as high as to Y130.81 after the data hit the wires, but then turned its tail and wiped out those gains.

  • Implieds moved further away from recent cycle highs, while USD/JPY 3-month 25 delta risk reversal flipped in favour of puts.
  • Spot USD/JPY trades at Y129.92, little changed on the day. Familiar technical picture remains in play. Sales past May 4 low of Y128.63 would expose Apr 27 low of Y126.95, while a jump above May 9 high of Y131.35 would open up 1.00 proj of the Feb 24 - Mar 28 - 31 price swing at Y131.96.
  • BoP current account balance & Eco Watchers Survey take focus on the data front today, while the BoJ will release the summary of opinions from its most recent monetary policy meeting.

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