JPY surges as equities drop for first.........>

FOREX: JPY surges as equities drop for first session in six

-JPY is the strongest currency in G10, rising modestly against all others as the

S&P 500 fell for the first session in the past six. Markets are clearly taking

profit on equities as the cash index approaches key resistance at the 200-dma of

2,742, a level not topped since early December. USD/JPY retreated further below

Y110 although recent ranges have been largely respected.

-AUD continued to underperform, with the outlook worsening for AUD/USD into the

US close, with the pair likely to close firmly below both the 50- and 100-dmas.

Bears now eye the recent cycle lows of $0.7076 for further direction.

-EUR/USD and EUR/GBP touched the lowest levels of the session as MNI, citing ECB

sources, reported that more poor economic data could lead the ECB to consider

their "through the Summer" guidance. EUR/USD bottomed out at $1.1375.

-Kiwi unemployment data takes focus from here, with New Zealand's unemployment

rate expected to rise to 4.1%. German industrial production data is also due

ahead of the Bank of England's Quarterly Inflation Report, rate decision and

minutes release.