From the FXWW Chatroom: USD/JPY falls to its lowest in nearly 8 weeks, losing 0.8% to reach a low around 111.50. Weak U.S. durable goods data and a break below key support at 111.74, the 200-day moving average–a closely-watched chart indicator–encouraged selling. CIBC currency strategist Jeremy Stretch says a close on Wednesday below this level could be the catalyst for further losses. The 1.2% fall in U.S. durable goods in October was “not particularly encouraging,” he says, while investors are slowly realizing that the Bank of Japan may pull away from ultra-accommodative monetary policies. “There is a reassessment of the market’s complacent view about monetary policy in Japan.”
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