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### POV - Amid a backdrop of.............>

DOLLAR-YEN
DOLLAR-YEN: ### POV - Amid a backdrop of geopolitical tension and poor US data
release, USD/JPY closed last week at near 4-month lows of Y108.74.
As the relief rally started to gather momentum following diplomatic solution
remarks from the US top General, strong US Retail Sales/Empire Mfg data extended
back through Y110.50.
USD/JPY touched recovery highs of Y110.95 but failed to consolidate gains after
dovish Fed minutes that highlighted inflation concerns and timings of further
hikes. President Trump moves to dissolve two business councils saw risk off
markets return with the corrective pullback extending to Y109.67.
USD/JPY has since reclaimed the Y110.00 level and will look for solid data
release in the US today to challenge the area of Aug16 highs.
From a technical point of view Y110.45 (Hourly resistance) stands in the way of
another attempt higher. A clean break of Y111.00 is needed to test resistance
from the 100-dma (Y111.27), ahead of Y111.62/66 (50% Y114.49-108.74, Daily cloud
base).

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