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USD/JPY trades flattish at Y107.86.......>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY trades flattish at Y107.86 after sliding 57 pips Tuesday.
- The downside momentum was ignited as U.S. TR proposed adding tariffs on $4bn
worth of EU goods early into yesterday's Asia-Pac session, which triggered a
downtick in USD/JPY. Subsequent recovery fell short of Y108.50 and the rate
declined further.
- Faltering U.S. Tsy yields accelerated the decline in USD/JPY through the WMR
fix, lifting the yen onto the top of the G10 pile.
- This occurred against the backdrop of worries inspired by the aforementioned
EU tariffs threats & downbeat comments from BoE Gov Carney. Elsewhere, Kyodo
reported that Japan considers stricter controls over exports to South Korea.
- Yesterday the rate returned returned below the key trendline drawn off the Apr
24 high, which shifts bullish focus to Y107.97, where the trendline is located
today. Above opens the 21-DMA/23.6% fibo retracement of Y112.40-106.78 at
Y108.08/11. Bears look to the 200-HMA/cloud Tenkan Sen at Y107.69/66.
- BoJ's Funo is set to speak later today, while the BoJ will buy 1-5 & 10-25+
Year JGBs.

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