Strong JPY demand emerged at the Tokyo...>

DOLLAR-YEN: Strong JPY demand emerged at the Tokyo fix this morning in Asia and

acted to press currencies lower. USD/JPY dropped from around Y111.98 to a low of

Y111.65 before rate pared losses through the balance of the session, trading

back to Y111.94 into Europe. Some suggestions were that overhang risk aversion

to the US pulling the Iranian oil export waiver were behind the move whilst

others highlight probable Japanese exporter interest ahead of the upcoming

Golden Week holidays which begin next Monday Apr29. Interesting to note that

rate closed below its 200-wma last Friday (Y111.98), the line currently coming

through at Y111.92, though Asian traders were keen to highlight the lead moves

lower in EUR/JPY and AUD/JPY, both breaking key support levels (Y125.85, Y79.90

respectively, the former though currently trading back above; the latter

bringing Y79.40 into focus). USD/JPY support now seen around Y111.50(Y111.51

200-dma, Y111.49 21-dma and rising trend support off Jan3 low), with some decent

sized options, with a Y111.50 strike, rolling off this week. Resistance remains

into Y112.00 ahead of the YTD high of Y112.17(Apr17).