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USD/JPY: fresh bullish legs, interest rate differentials eyed - Scotiabank

Analysts at Scotiabank noted that JPY is weak, testing fresh multi-month lows at levels last seen in early February. 

Key Quotes:

"Domestic developments have been limited and local activity is likely to remain muted as a result of the Golden Week holiday.

Widening interest rate differentials remain a dominant driver and the 2Y U.S.-Japan spread is testing fresh highs above 260bpts at levels last seen in late 2007."

"Measures of sentiment appear to be stabilizing however, and EURJPY risk reversals are suggestive of a renewed increase in the premium for protection against JPY strength."

EUR/USD: YTD lows on the cards below key 200-D SMA

EUR/USD is looking to stablise at a key technical level, with the 200-D SMA at 1.2014. Currently, EUR/USD is trading at 1.2006, down -0.60% on the day
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GBP/JPY consolidating below 149.50

The GBP/JPY is trading at around 149.44 down 0.69% on Tuesday. The GBP is under heavy pressure as the prospects of a rate hike in May are getting ver
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