JPY has fallen to fresh lows for the session, making a calendar-day low versus the EUR, GBP and AUD, amongst other currencies. Data today showed that the Japanese economy had slipped into a record level of deflation, with core CPI falling 1.7% y/y in June. This is a bad sign for the economy and will only encourage yield-seeking investment flows out of Japan, at least while global risk appetite persists. Other data showed unemployment in Japan rising in June to its highest level since 2003 while, more encouraging, the July PMI manufacturer’s survey showed its first reading above the 50.0 “boom-bust” threshold in 17-months. USD-JPY punched through a minor stop level zone around 95.40-50, and its 50-day moving average at 95.53, and has made a new calendar-day like many of the yen crosses. A test of Thursday’s high of 95.88 and the 96.00 look likely, though with the USD likely to underperform other currencies, the greater potential for yen losses will likely be against the likes of the AUD and EUR.