AUSSIE-YEN: AUD/JPY took a hit from risk-off flows...>

AUSSIE-YEN: AUD/JPY took a hit from risk-off flows triggered by headlines noting

that the U.S. is to introduce 5% tariffs on all imports from Mexico. This has

been communicated by U.S. President Trump via his Twitter account, before the

White House released the full text of the relevant statement, noting that the

tariffs may increase to 25% by Oct 1 if Mexico fails to "take action to

dramatically reduce or eliminate the number of illegal aliens crossing its

territory into the U.S."

- There was a number of Japanese data releases alongside the aforementioned

headlines, but these were overshadowed by the spillover from U.S.-Mexico trade

matters. Japanese industrial output (p) topped exp., unemployment was in line

with forecasts, while Tokyo CPI & retail sales figures were worse than exp.

- AUD/JPY has shed 24 pips and last trades at Y75.53. Bears look to the May 17

multi-month low of Y75.33, while a fall below would open the Jan 4 low of

Y75.24. Conversely, bulls need a move through Y75.83/84/87, which represent the

May 23, 17 & 29 peaks, before challenging the Y76.00 figure.