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DOLLAR-YEN: Risk aversion stemming from the ongoing Sino-U.S. trade war damaged

major regional stock indices and buoyed JPY overnight. Hawkish trade rhetoric

from Chinese state media and wounds inflicted by the conflict on the tech space

could not soothe the nerves of investors. USD/JPY last trades at Y110.33, a

touch lower on the day, after round tripping from the session low of Y110.13.

- Flash reading of Japanese manufacturing PMI from Nikkei saw the index move

into contractionary territory, as it printed at 49.6 vs. the prior 50.2. 

- U.S. Pres Trump travels to Japan during the weekend, will meet with Japanese

PM Abe. Expect a joint presser on Monday. This will likely draw interest, as

Washington & Tokyo seek to regulate bilateral trade relations.

- After the rate had a look below the level, bears continue to target the

uptrend support at Y110.18. Below here would open the psychological Y110.00

figure. On the topside, the initial attention is drawn to the 21-DMA/100-DMA at

Y110.51/55.

- Japanese CPI data will be released tomorrow.