Yen rises to the top of the pile as market....>

FOREX: Yen rises to the top of the pile as market contemplates wider

ramifications of yesterday's 'stealth taper'

-USD/JPY retreated further from the 2018 highs overnight as traders continue to

add to their belief that the trim of the BoJ's YCC operation yesterday may

signal a willingness to let Japanese yields rise further. USD/JPY has now taken

out the 100DMA and is closing in fast on the 200DMA at Y111.72.

-As a result, the greenback trades generally weaker against G10, correcting some

of yesterday's strength. The fall is far from dramatic, with the DXY still up

0.65% on 2018's lows.

-Relatively strong manufacturing and industrial production figures have done

little to stir confidence in the pound, with cable tumbling below $1.35 and

testing $1.3495 support shortly after the figures as analysts speculate that the

BoE's hawkish turn will be countered by ebbing inflation and more negative

Brexit headlines.

-US Import/Export Price Index figures left on the slate at 1330GMT, followed by

US Wholesale Inventories at 1500GMT.