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A flight to safety triggered by..........>

DOLLAR-YEN: A flight to safety triggered by escalating U.S.-China and
Japan-South Korea trade tensions pleased USD/JPY bears, weighing on the pair in
Asia-Pac hours. The rate shed 24 pips and last sits at Y107.10, after probing
the water below Y107.00 earlier in the session.
- To recapitulate, U.S. Pres Trump announced new tariffs on China, effective Sep
1, before stating at a campaign rally that he will be "taxing the hell out of
them" until a trade deal is struck. Meanwhile, Japanese gov't formally approved
the decision to remove South Korea from the list of trusted trade partners.
- A break under the lower Bollinger band (2%)/lower 1.0% 10-DMA envelope at
Y107.15/14 is reasurring for the bears. They look for a break under the
psychological Y107.00 level, which would bring the cycle low at Y106.78 into
play. Conversely, a return above the Jul 18 low of Y107.21, breached overnight,
would expose the Jul 3 low of Y107.53.
- Japanese docket next week features domestic labour cash earnings & household
spending (Tuesday), BoP data & Eco Watchers Survey (Thursday) and GDP (Friday).
The Summary of Opinions from the BoJ's latest meeting comes out on Wednesday.

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