The yen drew support from general risk...>

DOLLAR-YEN: The yen drew support from general risk aversion overnight, with the

Nikkei 225 finishing ~1.6% lower and S&P 500 futures having a look below 2,800,

before recovering somewhat on the back of optimistic signals re: the ongoing

Sino-U.S. trade talks

- USD/JPY last trades at Y110.06, 45 pips lower on the day.

- With the rate heading towards the psychological Y110.00 level, bears look for

a clean break below, which would let them set their sights on the lower

Bollinger band (2%), located at Y109.85. Meanwhile, bulls need a recovery

through the 100-HMA/55-DMA at Y110.24/36 before shifting focus to Y110.52, which

represents the 50-DMA and has capped gains today.

- Worth mentioning $1.05bn of options with strikes at Y110.00 expire at today's

1000ET NY cut.

- Japan will see quite a data-heavy Friday, with domestic labour mkt report,

industrial output, retail sales and Tokyo CPI all due. BoJ 5-25+ Rinban ops will

also provide some interest.