JPY: Yen Depreciation Has Only Just Begun

Following a major breakthrough to the downside in late March, the Japanese yen could be due a temporary reprieve. As we had suspected, the unit has come up against firm support at JPY93.75-94.00/US$, and a consolidation at this point, or even a retracement towards support-turned-resistance at around JPY91.00-92.00/US$, could be on the cards. Nevertheless, we are confident that any near-term strength would prove temporary, and give way to a much stronger depreciatory bias.

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