Despite ticking lower initially on the...>

DOLLAR-YEN: Despite ticking lower initially on the back of broader cautious mood

carried over from Monday, USD/JPY shot higher after U.S. President Trump said

that he "has a feeling that [U.S.-China trade talks] will be successful," and

the outcome will be known within 3-4 weeks. Trump's comments breathed a new life

into risk appetite, prompting benchmark regional equity indices to trim their

initial losses (although they remain well shy of neutral at writing).

- It is worth noting that flash Japanese BoP current account balance came in at

+Y2.8479tn vs. exp. of +Y3.0200tn, while trade balance (BoP basis) printed at

+Y700.1bn vs. forecasts of Y839.5bn

- BoJ Gov Kuroda told lawmakers that the BoJ will ease further if required.

- USD/JPY added 36 pips overnight and last deals at Y109.66. Above the 100-HMA

at Y109.75 would bring the psychological Y110.00 level back into play.

Conversely, bears look for a pullback below the lower 1.0% 10-DMA envelope at

Y109.27, which also represents a 38.2% fibo retracement of Y125.86-Y99.02.

- Japanese money stock and PPI figures are due on Wednesday and Thursday

respectively, while the usual BoJ Rinban ops will also draw attention.