AUSSIE-YEN: AUD/JPY last deals at Y75.17, 8 pips.....>

AUSSIE-YEN: AUD/JPY last deals at Y75.17, 8 pips worse off. Some JPY demand into

the Tokyo fix helped press the pair lower, but it has ticked away from worst

levels as a slightly stronger than expected PBoC fix dragged USD/CNH below the

key CNH7.0000 figure.

- This comes after AUD/JPY added 50 pips yesterday, as optimism surrounding

U.S.-China trade talks & no sense of urgency to ease policy in the RBA's

communique lent support. Although the rate trimmed gains later in the day, it

generally remained afloat.

- AUD/JPY approached but failed to penetrate a channel top yesterday. That said,

it remains well supported by a shorter-term trendline drawn off the Oct 10 low,

which comes in at Y74.83. A clean break above the YtD mid-point at Y75.34 & the

aforementioned channel top at Y75.46 would play into the hands of bulls, opening

up the 200-DMA at Y75.81. Bears need a drop under that shorter-term trendline

support before taking aim at the Oct 31 low of Y74.32.