The broader risk-on tone following China......>

FOREX: The broader risk-on tone following China tax cuts remarks supported risk

assets & currencies overnight. JPY crosses were the main beneficiaries with

strong gains seen across the board. AUDJPY improved 0.78% to Y78.49, its highest

level in nearly 3 weeks. Next resistance is seen at Y78.74 from the Dec 26 high,

a break opens Y78.92 which represents the 61.8% retracement of Y84.02-70.64.

GBPJPY gained 0.72% to Y140.43, however traders show caution with the raft of

Brexit headlines expected ahead of today's Meaningful vote. There was also solid

gains seen for NZDJPY, NOKJPY & CADJPY. Antipodeans remained buoyant at the

European crossover. AUDUSD managed to hold the 100-dma yesterday with gains

extending to $0.7222. Bulls focus on the $0.7240/50 area for the next leg higher

($0.7240 - 76.4% $0.7394-0.6741). While NZDUSD comfortably held the 200-dma

($0.6790), extending the uptrend to $0.6849. The 76.4% fibo of $0.6970-0.6575

provides the next layer of resistance at $0.6877.