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USD/JPY likely to be weighed by interest rate divergence

  • Pair boosted by weaker than expected Tankan, dovish LDP comments

  • Pair likely to be capped by recent US/Japan rate divergence

  • 2 & 10 year spreads have dropped under Feb lows

  • Traded in range 116.64-122.04 Feb/Mar. Largely 117-120

  • Near-term action influenced by hourly cloud

  • Key pivot seen at 100-HMA. Talk stops 119.30

 

  • Market Data
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