MNI: UK MAY GFK CONSUMER CONFIDENCE INDEX -40

Intensified official warnings on yen weakness failed to arrest its relentless slide on Tuesday. To the contrary, participants took FinMin Suzuki's comment that the exchange rate is determined by the market for an invitation to keep dumping the Japanese currency, even as the official wagged his finger at its rapid depreciation. USD/JPY extended gains after Suzuki's comments and soared to fresh multi-year highs, piercing the Y128.00 figure in the process, in what constitutes the rate's longest winning streak in more than half a century.

• The yen remains the worst G10 performer in early Tokyo trade, as USD/JPY jumped upon breaching another round figure resistance at Y129.00. The rate last deals at Y129.20, up 30 pips on the day.
• The next layer of resistance is provided by Y130.00, with participants trying to assess the likelihood of official intervention around that level. Note that the last time the BoJ stepped in to prop up the yen was during the Asian currency crisis in 1998.
• Measures of USD/JPY implied volatility are also headed north across all maturities. 1-year tenor surged to its highest point in two years on Tuesday.
• Japan's monthly trade report comes out shortly, with national CPI figures due Friday.

• RES 3: 151.13 - High Mar 3
• RES 2: 150.44 - High Mar 14
• RES 1: 150.14 - High Apr 1
• PRICE: 149.12 @ 15:36 BST Apr 19
• SUP 1: 148.72 - Low Mar 28
• SUP 2: 148.69 - 3.0% Lower Bollinger Band
• SUP 3: 148.01 - 1.0% 10-dma envelope

The primary downtrend in JGBs remains intact and the recent recovery between Mar 29 - Apr 1 appears to be a correction. The downtrend has breached the 61.8% Fib for the 2015 - 2020 rally at 149.65. The break here spells further losses toward 148.69/148.01, which marks both the 3.0% Lower Bollinger Band as well as the 1.0% 10-dma envelope. Resistance is at 150.14, Apr 1 high.

NZD/USD snapped a four-day losing streak on Tuesday as hawkish comments from Antipodean central bankers did the rounds, with the RBNZ reaffirming its clear tightening bias and the RBA noting that its rate-hike cycle would likely begin earlier than previously anticipated.

• The rate has edged higher and last operates at $0.6742, with bulls setting their sights on the 200-DMA/Apr 13 high at $0.6900/02. Bears need a fall through Apr 18 low of $0.6715 before taking aim at Feb 28 low of $0.6656.
• RBNZ Gov Orr's veiled calls for help from fiscal authorities in his fight against growing prices have been picked up by opposition lawmakers who blamed the government for fuelling inflation. FinMin Robertson pledged cautious spending but did not make any specific commitments, sticking to his "balanced" approach to public expenditures.
• New Zealand's economic docket is empty today, which turns focus to the quarterly inflation report, due tomorrow.