The well-documented attack on Saudi......>

DOLLAR-YEN: The well-documented attack on Saudi oil facilities boosted JPY from

the off yesterday, even as a mkt holiday in Japan sapped liquidity. Appetite for

safe haven assets prompted USD/JPY to gap lower, before round tripping from

Y107.92 on a series of tweets from U.S. Pres Trump, who said he authorised the

potential release of U.S. oil reserves, but also threatened with possible

retaliation once the culprit is identified. USD/JPY then met support at the Sep

11 low of Y107.50 and moved away from the level; a modest sell-off was seen into

Europe, but was more than recovered thereafter amid broader USD demand.

- USD/JPY trades flat at Y108.11. A clean break above Y108.17, the 76.4%

retracement of the Aug decline, would open the Sep 13 high at Y108.26. Bears

focus on the 100-DMA at Y108.05, ahead of the 61.8% retracement of the aforesaid

range at Y107.46, which limited losses in Monday's early indicative trade.

- U.S. President Trump informed that his envoys have reached an initial trade

agreement with Japan, which he wants the U.S. to enter within weeks.

- Japanese highlights this week include trade balance (Wednesday), BoJ MonPol

decision (Thursday) and national CPI (Friday).