Yen pares earlier gains after BOJ retract.....>

FOREX: Yen pares earlier gains after BOJ retract Kuroda inflation comments.

-A resurgence of the USD in early NY saw most majors pare Asia/European losses.

-US GDP came out on the soft side, however decent Durable Goods/Personal

Consumption was seen to counter initial losses. Usd/Jpy later squeezed to

recovery highs of Y109.59 but quickly pared gains after BOJ Governor Kuroda said

Japan is finally close to the 2% inflation target.

-This sparked broad yen demand with the USD quickly falling through Y109.00,

persistent supply took out reported onshore demand through Y108.50 to print

fresh multi-month lows of Y108.28. Eur/Jpy dipped under Y135.00 which previously

had provided a good support level to Y134.54. Gbp/Jpy dropped near-250 pips on

the session to Y153.43. This was later retracted by BOJ and the yen pared gains.

-Sharp Gbp/Jpy supply pressured cable to $1.4145, before dip buyers emerged off

the low. The move dragged Eur/Usd to $1.2408 with recoveries limited for the

balance of the session.

-Despite this, commodity based currency pairs fared well, Aud/Usd reclaimed

$0.8100, extended to 32-mth highs of $0.8136, Usd/Cad pierced Cad1.2300.