JPY has underperformed on the session thus......>

YEN: JPY has underperformed on the session thus far after Asakawa, Japan's vice

minister of finance for international affairs noted that he "cannot help but

assess the yen movements as one-sided".

- Elsewhere BoJ board member Funo warned against becoming overly pessimistic on

the the outlook for the Japanese economy.

- USDJPY last trades at 107.60, 30 pips or so higher on the day. 

- The latest flash Manufacturing PMI release from Japan indicated that the

recent swings in FX are beginning to have an effect on the sector, with survey

collators IHS-Markit noting that the "recent yen appreciation has coincided with

slower new export order growth. Furthermore, a number of panellists indicated

that the stronger currency had prompted them to lower prices to overseas

customers. Indeed, further yen strengthening will create unwanted drag on

inflationary pressures."

- USDJPY bears need a close < Y105.50 to add weight to the case for a move to

Y99.08-101.15. Bulls now look for a close > the daily bear channel top off 2018

highs to hint at a correction back to Y110.47 & above Y109.79 to confirm.