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USD/JPY shed nearly 30 pips overnight,...>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY shed nearly 30 pips overnight, moving back below Y111.00 in
the process, to last trade at Y110.78. The pair was weighed on by the general
risk-off theme, triggered by Indian-Pakistani tensions & an FT story re: a group
of U.S. senators making a push to ban solar equipment supplied by Huawei.
- Elsewhere, around halfway through the Asia-Pac session, sources highlighted
potential JPY cross selling from Japanese exporters ahead of month-end.
- The Nikkei 225 slid into negative territory and finished ~0.4% lower today.
- BoJ Gov Kuroda spoke overnight, but offered little fresh information.
- Bears need a clean break below the 100-WMA/100-HMA at Y110.78/77 before
attempting a move at Y110.68, which represents the 200-HMA. Conversely, initial
resistance is located at the psychological Y111.00 level, ahead of the Feb 14
high of Y111.13.
- Japanese focus this week turns to industrial output due Thursday, as well as
labour mkt data, Tokyo CPI & Nikkei m'fing PMI due Friday. Elsewhere, BoJ Policy
Board members Kataoka & Suzuki speak on Thursday & Friday respectively.

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