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Weak JPY and low performance in G10 – Scotiabank

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The Japanese Yen (JPY) has fallen marginally by 0.1% against the US Dollar (USD) and is again underperforming against all G10 currencies, although this time in a calm market, according to Scotiabank's Chief FX Strategists, Shaun Osborne and Eric Theoret.

Markets receive little guidance from the BoJ Governor after meeting with the PM

“The turbulence in the global bond market on Tuesday seems to have calmed down a bit, but higher yields remain a risk for the JPY and a central concern for the BoJ, as similar developments in April had pushed the central bank to stay on the sidelines and forced a pause in the tightening cycle.”

“It is said that the Governor of the BoJ Ueda met with PM Ishiba, and the comments following the meeting offered little in terms of political intentions. For USDJPY, we note the bullish breakout of the 200-day moving average (148,86) opening the risk of a push towards 150 and the recent highs around 151. The momentum is bullish with an RSI at 57.”

Disclaimer: For informational purposes only. Past performance is not indicative of future results.

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