Improving risk appetite emerged into.....>

DOLLAR-YEN: Improving risk appetite emerged into early Europe, as Japanese

equities pared losses and UST yields firmed, USDJPY squeezed to fresh daily

highs of Y110.35 before fading. Traders will look for a clear break and hold

above the 200-dma today for the next leg higher and a test of the Y110.45/50

area. On the downside, Y110.00 holds very large $2.39bn optional expiry interest

for today's NY cut and could anchor. Month-end flow also expected to dictate

price action. Data highlights in the US from Q1 GDP and Jobless Claims. First

quarter GDP is expected to be unrevised at 2.2%, while the chain price index is

expected to be unrevised at 1.9%, so there should be little attention paid to

the data unless there is a large revision. The level of initial jobless claims

is expected to rise by 2,000 to 220,000 in the June 23 week after falling by

3,000 to 218,000 in the previous week, keeping the level in its tight range.

USDJPY last Y110.27.