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USDJPY pair corrected to JPY 135.07 before moving around JPY 135.20
upcoming CPI release will support this view remains to be seen.
“USDJPY pair corrected to JPY 135.07 before moving around JPY 135.20”
According to recent market analysis, the USDJPY pair corrected to JPY 135.07 before moving around JPY 135.20 in the afternoon, failing to reach the JPY 135.36 recorded during overseas trading. The pair climbed to JPY 135.40 as London traders entered the market, following an increase in the probability of a June interest rate hike to around 25% from 8%, due to the recent FOMC meeting.
On the other hand, the EURUSD pair rose steadily in the morning, reaching 1.0977 after dipping below 1.0950 during overseas trading. However, USD buying occurred just before London traders entered the market, causing the pair to move to the 1.0960 range. The EURJPY pair also benefited from the upward trend of the USDJPY pair, rising to the mid 148 yen range.
In other economic news, the USDJPY pair rebounded to around 134.30 during the afternoon, after falling from the 135 yen range to the mid 134 yen range following the release of the April US Consumer Price Index. The pair had dropped below 134 yen in Tokyo morning trading due to the decline in US 10 year bond yields, but recovered as yields stabilized.
As for the EURUSD pair, it experienced limited directionality, reaching a high of around 1.0998 in the morning and dropping to around 1.0970 in the afternoon, without showing any clear trend. The EURJPY pair also followed the downward trend of the USDJPY pair in the morning, falling to around 147.12, but stabilized in the mid 147 yen range in the afternoon.
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