AUSSIE-YEN: Positive risk appetite, stemming from....>

AUSSIE-YEN: Positive risk appetite, stemming from the U.S.-China trade truce

from over the weekend, has bolstered AUD/JPY, allowing it to cross above its

50-DMA at Y76.13. The initial move was accelerated by firmer U.S. equity

futures, which sapped some more strength from the already struggling JPY.

- As a reminder, Presidents Donald Trump and Xi Jinping agreed to restart

bilateral trade talks, as well as signalled some modest concessions on either

side, most of which were, nonetheless, widely expected.

- AUD/JPY last trades at Y76.17, 47 pips higher on the day.

- Bulls need to clear the nearby Jun 10 high of Y76.32 before attempting a run

at Y76.87, which represents the 38.2% retracement of the YtD range. Above there

would expose the Y77.00 mark, which has remained intact since mid-May and which

limited gains on May9 and May 13. A pullback through the aforementioned 50-DMA

and the upper 1.0% 10-DMA envelope at Y75.72 would give bears the green light

for targeting the 50% retracement of the YtD range, located at Y75.68.