A sharp risk selloff overnight saw stocks, commodities, EM ETFsall lower & the JPY stronger. Analysts are suggesting a delayedreaction to Fed chair Powell's testimony on Tuesday , but it was month-end, which often results in flowsthat have to be executed to get back within prudential limits -rather than discretionary trades. CME futures have shown largeJPY shorts for some time, so trimming of those positions intomonth-end looks plausible, with the focus now on how Tokyoreacts to current JPY strength. USD/JPY opens with neutralsignals , but AUD/JPY, which correlates well withrisk in Asia, is in a strong downtrend . Thissituation is unlikely to last and the outcome will be pivotalfor the next move in risk assets. China Caixin Feb manufacturingPMI will be key for AUD/JPY intraday, after yesterday's softofficial data . As a fresh month kicks off, today'sprice action should provide the answer to yesterday's moves, butchances are most of that volatility was driven by month-endflow.<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^AUD/JPY: ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
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