USD/JPY shed 52 pips overnight and.......>

DOLLAR-YEN: USD/JPY shed 52 pips overnight and tanked below Y108.00 as the

greenback was offered across the board in reaction to yesterday's dovish

Fedspeak. Advancing Asia-Pac equity indices failed to contain the yen, which was

easily the best G10 performer.

- USD/JPY last trades at Y107.95. Bears look to the Jun 26 high/Jul 4 high/Jun 5

low of Y107.85/84/82. Below these levels would open the trendline support, which

kicks in at Y107.44. Bulls need to return onto the Y108.00 handle and breach the

21-DMA at Y108.05 before challenging Y108.28, which represents the 200-HMA. 

- Worth noting chunky option expiries with strikes at Y107.65-80 and Y108.40-50.

- Trade officials from Japan and South Korea will meet in Tokyo on Friday to

discuss the ongoing bilateral trade stand-off linked to historical matters, but

no breakthrough is expected. Munhwa reported that South Korea made an offer re:

compensation for forced-labour victims from the historical period of Japanese

occupation but has not received any response from Tokyo as of yet.

- Friday will see the release of final Japanese industrial output, as well as

1-25+ Year BoJ Rinban ops.