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Weekend reports noted that North.........>

DOLLAR-YEN
DOLLAR-YEN: Weekend reports noted that North Korean leader Kim has agreed to
suspend nuclear & missile tests saw the JPY under renewed pressure in Asia.
Usd/Jpy extended its recovery to Y107.89 but with lack of follow through drifted
to settle in narrow range trade. The rate will look to challenge the Y108 area
with resistance seen at Y108.04/05 (Equality rise from Y105.66, Feb9 low).
Eur/Jpy moved back above the 200-dma to Y132.46 but failed to consolidate gains.
This comes after a bank note from UBS that said their strongest conviction
trades include short EURJPY, "continuing our bearish EUR view for a 3rd week
ahead of PMI's & ECB. We buy JPY to gain defensive exposure in Asia. US data
today from mfg/svcs PMI at 1345GMT followed at 1400GMT by Existing Home Sales.
Usd/Jpy last Y107.80. 

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