Friday saw USD/JPY crater 133 pips, as...>

DOLLAR-YEN: Friday saw USD/JPY crater 133 pips, as global trade worries took

their toll on risk appetite. U.S. Pres Trump's unexp. announcement of 5% tariffs

on Mexican goods inspired fresh risk-off flows, only accelerated when London

traders got in. Risk aversion sent waves through equity & commodity markets,

with the resulting flight to safety keeping JPY comfortably atop the G10 pile.

- The rate last trades at Y108.25, 5 pips lower on the day. A ~7 pip leg lower

was noted as U.S. equity index futures opened on the back foot.

- Bears look for a downside breach of Y108.02/107.99/107.97, where the rate

bottomed on Jan 07/14/09. Below the Y108.02-Y107.97 area would bring the Jan 4

low of Y107.52 into view. Bulls look to the lower 1.0% 10-DMA envelope at

Y108.35. Above here would allow them to set their sights on the psychological

Y109.00 figure.

- Highlights in Japan this week include Nikkei m'fing PMI (f) & capex, both due

later today, and a speech from BoJ Gov Kuroda, due on Thursday. BoJ Rinban ops

will also provide interest, after the central bank adjusted its long-end

purchase plan for June.