The major theme in FX markets today is the....>

FOREX: The major theme in FX markets today is the outperformance of the yen,

something we have been flagging up over the past week. The unit the only Asian

currency up on the day, gaining 0.39% amid a sea of red, with the KRW

underperforming with a 0.7% loss. 

- USDJPY is pushing below support at the combination of its 50DMA and the

uptrend from the March low. The next meaningful level of support comes in at

108.05, corresponding to the May low and the current 100DMA.

- AUDUSD has edged lower following Friday's solid gains, with the negative

10-year real yield differential with the US continuing to weigh on the currency.

The trend remains for further weakness and the June 21 low looks set to be

tested again in the coming days. 

- It's a similar story for the Kiwi with the bounce off of support around 0.68

lacking any conviction and suggesting a retest could be on the cards. 

- The won's bear market appears to be just beginning given the deterioration in

the country's real yield advantage over the US in recent months. The pair is

heading to the next level of resistance which comes in at 1,150.