USD/JPY last deals at Y111.70, a few.....>

DOLLAR-YEN: USD/JPY last deals at Y111.70, a few pips softer on the day. This

comes after Wednesday's initial JPY slippage was reversed, as U.S. traders were

happy to bid up the JPY against all other majors, despite the rise in U.S. Tsy

yields, with 10-Year yields closing just above 3.00%. The JPY bid came as the

looming threat of a 25% tariff (prev. 10%) on $200bn worth of U.S.-bound Chinese

goods helped sour sentiment.

- Wednesday's corrective setback hasn't damaged the recent bullish structure

beyond repair, just yet. 111.25 now takes on the responsibility of the key

support level, while renewed gains back above 111.86 would restore the bullish

picture. Medium term, a break above would open up a move towards July/YtD highs

(113.17). USD/JPY bears look for a close below the 50-DMA (Y110.63) to confirm

another leg lower.