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The risk-positive flows allowed..........>

DOLLAR-YEN: The risk-positive flows allowed USD/JPY to trade as high as Y108.85,
before a slight pullback to Y108.75, where we trade last.
- As previously flagged, the rate broke higher Tuesday, taking out key
resistance at Y108.08/09, the May 16/17/19 highs. This marks a bullish reversal.
Worth noting that today's aforementioned intraday high at Y108.85 represents the
50% retracement of the Mar 24-May 6 decline, with a move through there opening
they way to the 3% upper Bollinger band.
- A lack of domestic catalysts for the JPY today, although it is worth
remembering that Tokyo has issued a COVID-19 warning to residents on the back of
the uptick in local cases.
- Expect risk flows and outright Tsy yields/JGB-U.S. yield spreads to drive
direction for the rate in the short term.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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