A slightly firmer risk appetite seen.....>

DOLLAR-YEN: A slightly firmer risk appetite seen in Asia hours generated some

momentum behind USD/JPY from the off Wednesday, putting the pair in the position

to stage an impulsive, 150 pip rally. Reported short-covering augmented the

move, with the rate taking out some key technical levels in the process. 

- The move extended beyond the Tokyo session with JPY de-coupling risk assets.

Some drew attention to a weak core machine orders print out of Japan, which came

after particularly grim GDP data from earlier this week & fuelled concerns over

potential recession. Furthermore, Japan is one of the largest clusters of

coronavirus, even excluding patients from the Diamond Princess cruiser.

- On the dollar side, above-forecast U.S. housing mkt & PPI data, and a mention

in FOMC meeting mins re: "appropriate" policy took some weight from off USD/JPY.

- The rate has eased off a tad, now trades -10 pips at Y111.27. Bears look for a

deeper pull back through the Y111.00 mark, towards the May 27 high of Y110.27.

Conversely, a clearance of the May 3 high of Y111.69 would bring into view the

76.4% retracement of the 2018-2019 slide at Y112.17.

- Coming up later this week are national CPI & flash Jibun Bank PMIs (Friday).