An FT piece suggesting that the U.S......>

DOLLAR-YEN: An FT piece suggesting that the U.S. considers removing some of the

tariffs on China has put the yen on the defensive, even as the general tone of

the article was far more guarded than the headline. USD/JPY last sits at

Y108.70, 13 pips higher on the day, with Japan back from its elongated weekend.

- Monday saw USD/JPY gain traction from the off amid optimism re: U.S.-China

trade relations and USD strengthening alongside U.S. Tsy yields.

- The pair started this month with a move off a channel support. The 200-DMA,

which kicks in at Y109.03, provides the initial topside target. A break here

would draw attention to Y109.29, where the rate peaked on Oct 30. Conversely,

bears look for a dip under the Oct 23 low/38.2% retracement of the Oct range at

Y108.25/22 before targeting the aforementioned channel support, now at Y108.05.

- S. Korean Pres Moon held a spontaneous conversation with Japanese PM Abe on

Monday, which some see as a +ve signal re: bilateral relations. That said, Seoul

& Tokyo stick to their original stances, with no signs of either giving way.

- Coming up this week are the minutes from the BoJ's Sep MonPol meeting, due

Wednesday, as well as Japanese earnings/spending figures, due Friday.