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USD/JPY last deals at Y111.38, 35 pips...>

DOLLAR-YEN: USD/JPY last deals at Y111.38, 35 pips worse off, as risk appetite
waned overnight, with the Nikkei 225 sliding into negative territory failing to
extend on Friday gains. Furthermore, a BBG source said that "some funds
liquidated long positions in USD/JPY" in response to the Nikkei 225's retreat,
adding that there are more stop-loss orders below the Apr 4 low of Y111.34.
- BoJ Gov Kuroda spoke overnight, maintaining his optimistic econ growth and CPI
outlook for Japan. For our POLICY piece see MNI Main Wire at 01:33 BST 04/08.
- Worth noting the BoJ cut its assessment of 3/9 regions and raised its
assessment of 1 region.
- Little immediate impact was noted on the back of domestic data releases.
- Bears look for a breach of the aforementioned Apr 4 low of Y111.34, hoping to
gain some downside impetus. This would allow them to set their sights on
Y111.21, which limited losses the day before. Meanwhile bulls need to retake the
200-DMA/100/HMA at Y111.49/51 before challenging Friday's high of Y111.82.
- Japanese focus turns to domestic PPI, core machine orders & comments from BoJ
Gov Kuroda due Wednesday.

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