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USD/JPY last seen at Y106.14, 13 pips....>

DOLLAR-YEN: USD/JPY last seen at Y106.14, 13 pips lower on the day, after
tracking fluctuations in broader risk appetite. Early cautious mood inspired
modest USD/JPY sell-off, but the pair bounced from Y106.00 after the PBoC fixed
the central USD/CNY mid-point below the RTRS estimate (albeit above the key
CNY7.0 level). A stronger than exp. yuan fix revived risk appetite, driving the
Nikkei 225 back into positive territory. After making two unsuccessful attempts
at a breach of Y106.30, USD/JPY eased off a tad into the Asia/Europe crossover.
- A clean break below the Y106.00 barrier, which provided support overnight,
would please bears, drawing their attention to the lower Bollinger band (2%) at
Y105.86. Below there would bring yesterday's cycle low of Y105.50 back into
play. Meanwhile, bulls target the Y106.28 100-HMA, while the next layer of
resistance above is provided by Y106.65, the 76.4% retracement of YtD range.
- Japan has approved the first round of high-tech materials exports to South
Korea since tightening relevant export regulations last month.
- Japanese focus tomorrow turns to the flash reading of Q2 GDP, as well as 1-5 &
10-25+ Year BoJ Rinban ops.

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