A flight to safety triggered by..........>

DOLLAR-YEN: A flight to safety triggered by escalating U.S.-China and

Japan-South Korea trade tensions pleased USD/JPY bears, weighing on the pair in

Asia-Pac hours. The rate shed 24 pips and last sits at Y107.10, after probing

the water below Y107.00 earlier in the session.

- To recapitulate, U.S. Pres Trump announced new tariffs on China, effective Sep

1, before stating at a campaign rally that he will be "taxing the hell out of

them" until a trade deal is struck. Meanwhile, Japanese gov't formally approved

the decision to remove South Korea from the list of trusted trade partners.

- A break under the lower Bollinger band (2%)/lower 1.0% 10-DMA envelope at

Y107.15/14 is reasurring for the bears. They look for a break under the

psychological Y107.00 level, which would bring the cycle low at Y106.78 into

play. Conversely, a return above the Jul 18 low of Y107.21, breached overnight,

would expose the Jul 3 low of Y107.53.

- Japanese docket next week features domestic labour cash earnings & household

spending (Tuesday), BoP data & Eco Watchers Survey (Thursday) and GDP (Friday).

The Summary of Opinions from the BoJ's latest meeting comes out on Wednesday.