Tuesday saw USD/JPY stage a..............>

DOLLAR-YEN: Tuesday saw USD/JPY stage a spectacular recovery, ignited by

promising remarks re: stimulus measures from U.S. Pres Trump/Tsy Sec Mnuchin.

The rally ran out of steam in EU hours & the rate eased off ahead of the WMR fix

as reports from U.S. press talked down the odds of an imminent stimulus package.

Subsequent rebound took USD/JPY to new daily highs, before a modest correction.

- The pullback from Tuesday's peak has been extended into today's Asia session.

The rate has softened alongside U.S. equity futs and now trades -61 pips at

Y105.03. Continued worry about Covid-19 evident, with mkts probably somewhat

disappointed w/fairly inconsequential briefing from Pres Trump re: stimulus.

- The round figure of Y105 briefly gave way, bears keep an eye on Tuesday's low

of Y102.02. A breach of Tuesday's peak at Y105.92 is needed to give bulls a

fresh impetus & bring the Mar 6 high of Y106.34 into play.

- Locally, Kyodo reported that the BoJ considers expanding its ETF purchasing

programme, a little after the Bank revealed Y101.4bn worth of ETF purchases on

Tues. Elsewhere, a Japanese off'l told WSJ that the Tokyo Olympics would be

delayed if they can't go ahead in 2020.