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The yen faced selling pressure in the....>

DOLLAR-YEN
DOLLAR-YEN: The yen faced selling pressure in the Asia-Pac session, landing at
the bottom of the G10 pile, as risk sentiment breathed a light sigh of relief.
As a result, USD/JPY sits 26 pips above neutral levels at Y106.49.
- The combination of (1) a BBG report stating that a Japanese material maker JSR
has received a permit to resume shipments to S. Korea, (2) a slightly firmer
than exp. PBoC fix & (3) U.S. North Korea Rep Biegun's comment that Washington
is ready to engage with Pyongyang supported risk appetite, adding weight to JPY.
- Aforementioned headlines overshadowed a Yomiuri story citing a draft of
Japan's annual defence white paper as saying that N. Korea has likely managed to
make its nuclear weapons into warheads. The white paper awaits gov't approval in
mid-Sep. Elsewhere, RTRS sources said that Japan & the U.S. will hold
ministerial-level trade talks this week, but hopes for a quick deal are fading
amid divisions re: agriculture & automobiles.
- Bulls target Y106.69/70, the highs of Aug 20/19. Above opens the 21-DMA/Aug 13
high of Y106.95/98. Bears look for a pullback towards the Y106.00 mark.
- Jibun Bank PMI readings hit tomorrow, while CPI figures are due on Friday.

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