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Reflections #29 - USDJPY looks rich around 142

BoJ left rates unchanged and also did not announce any major change in its YCC stance. This has given USDJPY a boost towards 142 which we see as an area where it may run out of steam and likely see a correction towards the middle of the recent trading channel.

Momentum indicators flashing a red signal with some negative divergence building in RSI and stochastics.

In addition, our cross asset regression shows that USDJPY looks very rich relative to oil, vix and US10Y.


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