An exchange of good will gestures........>

DOLLAR-YEN: An exchange of good will gestures between the U.S. and China

inspired appetite for risk assets in Asian trade, sapping strength from the yen.

USD/JPY pushed higher as U.S. President Trump tweeted that the upcoming hike of

tariffs on Chinese imports will be delayed by two weeks. USD/JPY edged above

Y108.00 for the first time since Aug 1, with gains extended on

the back of a BBG source story suggesting that Beijing considers permitting the

resumption of agricultural imports from the U.S.. Rate touched a high of

Y108.17(76.4% Aug1-26 fall Y109.32-104.46; 100-dma Y108.15) before momentum

faded.

- Rate drifted lower ahead of Europe, attracted back to the Y108.00 level by

suggested Tokyo option expiry at this level, before extending move to Y107.96. 

- A break of the Y108.15/17 area to expose the Y108.45 YtD mid-point, above

Y108.50 could accelerate move. Asian traders have suggested that any move higher

likely to meet headwind resistance from corporates into the FY half year.

- Support at the Sep11 low of Y107.50.