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USD/JPY last seen at Y109.10,............>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY last seen at Y109.10, marginally higher on the day, after
finishing a dozen pips better off Tuesday, with JPY sitting well towards the
bottom of the G10 pile.
- The rate knee-jerked higher halfway through Tuesday's Asia-Pac session as
Xinhua reported that top trade reps from the U.S. and China spoke by phone and
plan to keep up communications re: phase-one trade pact. The spike was quickly
retraced as it turned out there was little of substance behind those headlines.
Price action was pretty lacklustre through the rest of the day, with a swing
higher in EU/U.S. hours helped by U.S. Pres Trump's optimistic trade rhetoric.
- Tuesday saw the rate break above its 200-DMA at Y108.94, which shifts bullish
focus to the Nov 7 high of Y109.49. Meanwhile, a return under the 200-DMA would
open up the 50-DMA/Nov 21 trough at Y108.33/28.
- Japanese focus turns to domestic retail sales (Thursday), as well as Tokyo
CPI, unemployment and flash industrial output (Friday). BoJ's Sakurai speaks
later today.

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