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USD/JPY Forecast: Hit 5-week low, consolidation likely
The USD/JPY pair fell to 108.11 on Tuesday - the lowest level since April 23 as the political uncertainty in Europe and the resulting risk aversion in the equities put a strong bid under the anti-risk Japanese Yen. Fear that the new elections in Italy will deliver a stronger mandate to eurosceptic parties weighed heavily over the Italian bond and stock markets. For instance, the two-year Italian government bond yield closed yesterday at 2.77 percent vs 0.9 percent on Monday. The 10-year yield jumped 48 basis points to 3.16 percent. Dow Jones Industrial Average (DJIA) fell nearly 400 points on Euro crisis fears. The ... (full story)