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USD/JPY softens as yen hedges surge ahead of BOJ
The Japanese yen is catching modest bids here as stocks soften on Microsoft’s disappointing AI outlook and as pressure builds for the BOJ to tighten. Microsoft’s results were adequate, but that won’t be enough to keep the mega-cap tech/AI trade going. Profit taking will likely remain the dominant theme for tech, especially if Meta disappoints after the close. Microsoft’s slowdown with their cloud business and lowering the bar for their AI growth should only trigger a modest pullback. Microsoft is still winning the AI race and still seems to have a robust long-term outlook. The BOJ got some solid advice about ... (full story)