The JPY crosses turned bid in early...........>

FOREX: The JPY crosses turned bid in early dealing, with USD/JPY taking out

Monday's session highs on the back of Renesas Electrics outlining a purchase of

IDT for ~$6.7bn. USD/JPY bulls are looking for a clean break of the 76.4%

retracement of the move from Y111.76 to Y110.38 (Y111.43), with a broader focus

on the September 06 high (Y111.76). Sources pointed to decent Japanese buying of

the cross.

- Elsewhere AUD/USD briefly gave way through $0.7100, with the cross registering

a low in line with the 1.618% swing target at $0.7092, before recovering to

$0.7125. The USD experienced marginal losses against the remaining majors,

albeit in a headline light session.

- UK labour market data & the German ZEW survey headline on Tuesday, with

U.S.-Canada NAFTA talks set to resume, after FT reports suggested that Mexico is

willing to sign up to a bilateral trade deal with the U.S. if Canada cannot

reach an agreement with the States.