Japan is back from holidays, USD/JPY.....>

DOLLAR-YEN: Japan is back from holidays, USD/JPY trades 5 pips lower at Y107.50.

- The pair opened higher on Monday, as optimism surrounding Sino-U.S. trade

talks filtered through. After a quiet Asia-Pac session, it sold-off sharply in

reaction to especially bad PMI numbers out of France, Germany and the EZ.

USD/JPY bottomed out at Y107.31 before recovering to finish near Friday's close.

- Bears look for a move below the aforementioned Y107.31 level before targeting

the 50-DMA, today intersecting at Y107.51. Bulls look for a clearance of the

100-DMA at Y107.89 to improve the outlook. A break here would prompt them to set

their sights on the Y108.00 mark.

- The NYT and WP reported that the finalisation of the U.S.-Japan trade pact,

which received the initial thumbs up from both parties last week, may be delayed

because of Tokyo's worries that the U.S. may still impose auto tariffs on Japan.

- Jibun Bank PMIs and a speech from BoJ Gov Kuroda headline the local docket

today. BoJ's Masai will speak on Wednesday, while Kuroda will appear again on

Thursday. BoJ Jul MonPol meeting minutes are also due Wednesday, while Tokyo CPI

comes out on Friday.