Despite posting gains in early...........>

DOLLAR-YEN: Despite posting gains in early European trade yesterday, USD/JPY

slide thereafter as a CNBC source report describing the mood in Beijing about

the ongoing trade talks with the U.S. as "pessimistic" knocked the rate on its

head. Losses were extended as U.S. Pres Trump tweeted that he discussed USD &

negative interest rates with Fed Chair Powell. A modest late doors pullback

allowed the pair to trim losses, but it still finished in the red.

- USD/JPY sits at Y108.60, 8 pips lower on the day. The rate has slipped in

sympathy with the Nikkei 225. From the technical perspective, the initial

downside target is provided by Y108.44/43, the ascending channel floor/mid-point

of the YtD range. A break here would expose the 50-DMA/Nov 14 low of Y108.26/24.

On the topside, the focus remains on the 200-DMA at Y108.99, after the rate

showed above yesterday. A push above would open the Nov 7 peak at Y109.49.

- Asahi reported that China told Japan & S. Korea not to deploy new U.S.

missiles if they don't want to risk consequences for relations w/Beijing.

- This week's local docket includes trade balance (Wednesday), as well as

national CPI & flash Jibun Bank m'fing PMI (Friday).