AUSSIE-YEN: AUD/JPY has shed 32 pips thus far and....>

AUSSIE-YEN: AUD/JPY has shed 32 pips thus far and sits at Y74.05. The weekend

attack on major Saudi oil facilities sparked risk-off flows to start the week

with. U.S. President Trump's declaration that he authorised releasing crude from

U.S. Strategic Petroleum Reserves if needed, helped slightly mitigate the

initial market reaction, but only for a while. Recovery in AUD/JPY met

resistance around Y74.20 and the pair slid again, before moving away from lows

towards the present levels.

- Bears look for a dip below the Sep 11 low of Y73.67, which would shift

downside focus to the Sep 10 low/50-DMA, located at Y73.42/41. Conversely, a

recovery of the upper 1.0% 10-DMA envelope, today at Y74.14, would encourage

bulls to target Y74.49, the 61.8% Fibonacci retracement, which capped gains last

Thursday and Friday.

- With Australian docket empty today & Japan on holiday, focus falls on economic

activity data, due out of China at the top of the hour.