Brexit Matters Steal The Show

USD/JPY slipped in Wednesday's Asia-Pac session, before recovering in the second half of the day. The rate was happy to hold the prior day's range in subdued pre-holiday trade, with main focus falling on reports suggesting that a Brexit deal is nigh, which reduced demand for safe haven assets.

• USD/JPY last deals at Y103.54, little changed on the day. Bears need a fall through Y102.88, the low print of Dec 17, before attempting a move at the 1.00 projection of Oct 7 - Nov 6 downleg from Nov 11 high at Y102.75. Meanwhile, gains past the 20-EMA/Dec 21 high at Y103.81/89 would open up Dec 11 high of Y104.28.
• Brexit news boosted GBP/JPY Wednesday, with the rate adding 1.28 fig. on the day. It last sits +13 pips at Y139.89, as sterling continues to outperform its G10 peers. Bulls look for a move through Wednesday high of Y140.32 before taking aim at Dec 17 high of Y140.45 & Dec 4 high of Y140.71. Bears keep an eye on the 50-DMA/Dec 22 low at Y138.12/00, followed by Dec 21 low of Y136.97.
• Local press reports suggested that ex-PM Abe may be summoned to testify in parliament Friday on the ruling party's spending scandal.
• BoJ Gov Kuroda will appear at a Nippon Keidanren event in Tokyo roday.
• Looking ahead, Japan reports Tokyo CPI, unemployment & retail sales on Friday.