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USD/JPY continues to probe the water.....>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY continues to probe the water below Y107.00 and last trades a
touch away from lows and 34 pips worse off on the day, at Y106.96.
- A combination of equity sell-off led by Chinese stocks and flaring U.S.-Iran
tensions generated demand for safe haven assets, lending support to the yen
after the Tokyo fix. Chinese equities struggled on the back of liquidity worries
flagged in a number of press reports. Elsewhere, Teheran declared that U.S.
sanctions imposed on Iran on Monday close the diplomatic path to resolving
bilateral tensions forever.
- JPY ignored the minutes from the BoJ's April meeting, during which the Bank
tweaked its forward guidance.
- Bears now look to the 76.4% retracement of the Jan 3-Apr 24 rally/bear channel
base drawn off Apr 24 high at Y106.50/39. Bulls need to recover Y107.00 before
attempting a run at the Jan 4 low of Y107.52.
- Japanese retail sales data is exp. on Thurs; industrial output, unemployment
and Tokyo CPI hit on Fri. Also on Fri, the BoJ releases the summary of opinions
from its latest MonPol meeting & BoJ's Wakatabe is set to speak on Thurs.

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