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An exchange of good will gestures........>

DOLLAR-YEN: An exchange of good will gestures between the U.S. and China
inspired appetite for risk assets, sapping strength from the yen. USD/JPY was
pushed higher as U.S. President Trump tweeted that the upcoming hike of tariffs
on Chinese imports will be delayed by two weeks. As a result, the rate jumped
onto the Y108.00 handle for the first time since Aug 1. Gains were extended on
the back of a BBG source story suggesting that Beijing considers permitting the
resumption of agricultural imports from the U.S. After topping out at Y108.17,
USD/JPY faded a touch to the present levels.
- The rate sits at Y108.02 at typing, 20 pips higher. After the Y108.00 barrier
gave way, bulls target the 100-DMA at Y108.15. A break above would expose the
Y108.45 YtD mid-point. Bears look to the 38.2% of the YtD slide at Y107.49.
- Little to no reaction was noted to local data releases, with a slight miss in
PPI coupled with a beat in core machine orders.
- BoJ Gov Kuroda met with PM Abe to "exchange opinions on economy." Kuroda
claimed they didn't discuss negative rates.
- The final reading of Japan's industrial output for will be published tomorrow.

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