AUSSIE-YEN: AUD/JPY last deals at Y81.70, 42 pips....>

AUSSIE-YEN: AUD/JPY last deals at Y81.70, 42 pips lower on the day. The rate

nosedived in early Asia-Pacific dealing, weighed by broader risk off flows. Some

think that BoJ's decision to cut the size of 5-10 Year JGBs purchases may be

lending support to the yen. Elsewhere, some pointed to the breakdown of the

latest Nikkei manufacturing PMI out of Japan, which noted that the "survey does

bring some cautious undertones to the fore, however. Export orders declined at

the fastest pace in >2 years, while total demand picked up only modestly.

Confidence also continued to fall, a 7th straight month in which this has now

occurred. The prospects heading into 2019 ahead of the sales tax hike still

appear skewed to the downside." 

- Bears eye the nearby Dec 12 low of Y81.63 and a break below would open up the

50-DMA at Y81.29, followed by the psychological Y81.00 level. On the topside,

initial resistance is located at the 21-DMA at Y82.16. Bulls need a break above

before shifting focus to yesterday's peak at Y82.21.