Saturday drone strike at the world's.....>

DOLLAR-YEN: Saturday drone strike at the world's largest crude-processing

facility, owned by Saudi Aramco, created appetite for safe haven assets at the

start of the week. The attack is said to have removed ~5% of global oil

production. USD/JPY gapped lower as investors digested the news before pushing

slightly higher as U.S. Pres Trump authorised the release of oil from U.S.

Strategic Petroleum Reserves if needed; this was weighed against his subsequent

remark that the U.S. remains "locked and loaded" to respond once the culprit is

identified. USD/JPY fluctuated as a result, albeit remained at depressed levels.

- USD/JPY last seen at Y107.85, 24 pips worse off. Bears to look for a further

dip through Y107.50, the low of Sep 11 rejected earlier today. Below there opens

Y107.46, the 61.8% retracement of the Aug fall, which provided support in early

indicative trade. Meanwhile, bulls look to clear the Y108.00 barrier. A break

would expose Friday's monthly peak at Y108.26.

- As a reminder, Japanese markets are shut for a national holiday today. Trade

balance (Wednesday), BoJ MonPol decision (Thursday) and national CPI (Friday)

provide the highlights this week.