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ZARJPY - Strong Focus on 7.60 Support

SOUTH AFRICA
  • ZARJPY ticks higher today after finding a low at 7.69 earlier; key support to watch on the downside stands at 7.60, which corresponds to the 38.2% Fibo retracement of the 6.66 – 8.18 range (2021 low high) and its 100DMA.
  • A break below that level could lead to further consolidation on the pair as participants will start to speculate that the risk-off environment will continue to weigh on some EM carry currencies.
  • Major risks for EM assets in the short run: rising uncertainty over the Delta variant and the contraction in Chinese liquidity.
  • On the topside, first resistance to watch stands at 7.82 (50DMA and 23.6% Fibo).

Source: Bloomberg/MNI

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