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Modest risk on flows were noted with.....>

DOLLAR-YEN
DOLLAR-YEN: Modest risk on flows were noted with USD/JPY now trading at highs
~Y110.68, after T-Notes breached yesterday's lows & as US equity index futures
pushed through Wednesday's highs overnight, although headline catalysts were not
apparent. The move held despite comments from China's MOFCOM re: the trade war
situation, showing that they have no intention of backing down after the latest
batch of U.S. sanctions headlines.
- After closing above 110.25 (200-dma) bulls now look for a close above Y110.90
(June 15 high) to confirm traction above the 200-DMA and shift initial focus
higher. Y109.01 support remains key this week. Bears need a close below this
level to confirm a break of the 55-DMA.
- Nearby options interest comes in the form of $1.09bln worth of Y110.75
expiries at today's 10AM NY cut.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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