JPY selling by the BOJ triggered aggressive moves in the JPY crosses, with USD/JPY and EUR/JPY breaking up through their daily clouds. Near-term dips are to be expected, but with the spectre of further intervention still in place, risk is for further JPY weakness over the near term. Elsewhere, last week’s risk rally continues to unwind with stocks stepping back from the highs and commodities seeing a pause in recent strength. In FX space we expect further near-term unwinding of recent moves.
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BARCLAYS CAPITAL
TECHNICAL RESEARCH