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Japan emerges from a long weekend;.......>

DOLLAR-YEN
DOLLAR-YEN: Japan emerges from a long weekend; USD/JPY 5 pips lower at Y105.25.
- The yen topped the G10 pile yesterday, even as a market closure in Japan
capped liquidity. A round of USD/JPY sales was noted early into yesterday's
Asia-Pac session amid worries re: U.S.-China trade relations. Risk appetite
recovered a tad after a stronger than exp. PBoC fix, but faded again into
Europe, as markets digested heightened political/econ risks across the globe.
USD/JPY moved in sync with gyrations in risk sentiment. The pair ticked away
from lows in the London/NY crossover, but the recovery attempt held shallow.
- Yesterday's close below the key Aug 7 low of Y105.50 opened up the
psychological support, provided by Y105.00. Should the rate break under the
figure, bears would target the YtD low of Y104.87, printed during the Jan 3
flash crash. Bulls look to recover Y105.50 before attempting a move at the
100-HMA, which intersects at Y105.81.
- Japanese PPI hits later today, while core machine orders and final industrial
output will follow on Wednesday and Thursday respectively. The next round of BoJ
Rinban ops is scheduled for Friday.

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