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Japanese Yen Outlook: Beware of Currency Intervention Levels
An impressive week for the Japanese Yen having broken out of its 105-107 range on the downside. The path of least resistance remains lower for USD/JPY as it breaks below 104.50. That said, we are now approaching jawboning levels with 104.17 the July low prior to commentary from Japanese authorities that the MOF, FSA and BoJ were working together to examine market moves. Therefore, as the pair edges towards the low 104s, risks of another round of currency jawboning have been heightened. Elsewhere, the recent JPY appreciation looks to slightly overcooked when comparing against US 10yr yields. However, one factor to ... (full story)