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USD/JPY shed 34 pips overnight and.......>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY shed 34 pips overnight and last sits at Y106.12. Speculation
re: today's PBoC fix and its ultimate level triggered some risk-off flows,
sustained thanks to a slide in the Nikkei 225. USD/JPY posted losses as a
result, while a dovish surprise in the RBNZ MonPol decision and the subsequent
presser further cemented the yen's outperformance in the G10 FX space.
- The summary of opinions from the latest BoJ MonPol meeting didn't provide any
notable surprises, with most members cautious re: the prospect of further
easing, even as a couple of dovish voices sounded more aggressive than the
status quo.
- USD/JPY had a look below Y106.00 earlier in the session, before moving away
from lows. A return below the lower Bollinger band (2%) and the aforementioned
round figure would be a good prognostic for the bears, opening up yesterday's
cycle low of Y105.52. Bulls look to the 76.4% retracement of the YtD range at
Y106.65, while a rally above would expose the 100-HMA at Y106.75.
- The remaining data releases in Japan include BoP data & Eco Watchers Survey
(tomorrow) and flash GDP (Friday).

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