RBC are long USDJP at 109.05, with a.....>

DOLLAR-YEN: RBC are long USDJP at 109.05, with a target of 111.23 and a stop at

108.07. They note that "last week's IMM data showed USD shorts at their lowest

level in 2 months but looking at broader positioning metrics (including risk

reversals & correlations to currency manager returns), there are still many

managers out there who are short USDJPY and/or long EURUSD. Most USD bulls cut

back drastically after Jan or were expressing USD upside through call spreads,

capping their participation in the current rally. With that in mind we see room

for last week's moves to squeeze further. Trump is widely expected to announce

an end to the Iran deal tomorrow but there is still a scenario where he opts to

extend the sanction waiver, or the exit terms mean a delay to the deal being

torn up, which would be positive for risk appetite. The BoJ's March minutes

released yesterday make it clear the BoJ is intent on explaining to the public

that the economy has not yet reached a phase where it should consider the timing

and measures of a so-called exit from monetary easing while FOMC members

reinforce the message of ongoing tightening. Our US economists see risks to

inflation this week skewed to the upside."