How Far Do EUR/JPY, USD/JPY Pullbacks Run?
- USDJPY holding up at 61.8% Fibonacci extension, daily 21-EMA.
- See the June forex seasonality report.
The JPY-crosses are the big movers overnight after some two-faced comments by the BoJ's Kuroda, which suggested that policymakers were keeping an eye on the weakening currency, yet at the same time saw no indication of a weak Yen hurting Japan. In either case, the market has unwound short-term short Yen positions fairly quickly, with both EURJPY and USDJPY falling back to important mean reverting levels established on medium-term timeframes.
--- Written by Christopher Vecchio, Currency Strategist
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