[MARKET ANALYSIS] USD/JPY extends on Thursday's losses, briefly dipping below 158 following jawboning and a hawkish report
Importance
Level 1
- DXY continues to fall from the 99.40 peak made early in the APAC session, aided by strength in the Japanese yen following comments from Japan’s Finance Minister Katayama (see USD/JPY section).
- EUR/USD oscillates in a 1.1603–1.1614 range amid a lack of clear drivers, with final German CPI figures awaited.
- GBP/USD remains below 1.34 but trades with slight gains in the Asia-Pac session, largely as a function of yen strength weighing on the dollar.
- USD/JPY extends the weakness seen on Thursday following further jawboning by Japan’s Finance Minister Katayama and a Reuters report stating that the BoJ could hike rates as soon as April due to the inflationary effects of a weaker JPY. The pair briefly dipped below 158 before paring back most of the move.
- Antipodeans trade with modest gains despite weakness in Chinese equities and metals.
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