AUSSIE-YEN: AUD/JPY spiked lower at the Asia open,...>

AUSSIE-YEN: AUD/JPY spiked lower at the Asia open, weighed on by hawkish trade

comments from U.S. TR Lighthizer & U.S. Tsy Sec Mnuchin, who confirmed that the

U.S. is planning to increase tariffs on Chinese goods on Friday. However, the

rate advanced thereafter and last deals at Y77.50, 6 pips higher on the day,

even as the Nikkei 225 has operated in the red.

- The pair has ignored better than exp. Australian retail sales and trade

balance data.

- This comes after Monday saw the pair print the intraday low of Y76.79, the

worst level since early January, as it came under pressure from the escalation

of Sino-U.S. trade war, triggered by U.S. President Trump's tariff threats from

over the weekend.

- A return below Y77.43, which represents the lower 1.0% 10-DMA envelope would

allow bears to attempt a move at the psychological Y77.00 level. Conversely,

bulls need a topside breach of the down trendline from the Apr 17 high, which

comes in at Y77.94, before challenging Y78.00, which provided a layer of

technical support since late January.