AUSSIE-YEN: AUD/JPY has slipped 15 pips so far and...>

AUSSIE-YEN: AUD/JPY has slipped 15 pips so far and last deals at Y72.42. The yen

outperforms its G10 peers, even as the Nikkei 225 opened on the front foot.

- Tuesday saw an impressive rally from the pair, as it closed as much as 148

pips better off. It traded sideways from the off, with the Y71.00 figure broadly

providing support, before skyrocketing on the back of the U.S. decision to delay

tariffs on some consumer goods from China in the lead-up to Christmas. The

announcement was accompanied by some positive rhetoric, indicating that both

sides have talked trade on the phone. AUD/JPY's rally ran out of fuel 7 pips shy

of Y73.00 and ebbed off highs.

- Bears look for a pullback through the Aug 8 high of Y72.36 towards the nearest

round figure below. Conversely, the initial bullish target is provided by the

psychological resistance/76.4% fibo retracement of the YtD range at Y73.00/02.