The yen was bid as U.S.-China tensions...>

DOLLAR-YEN: The yen was bid as U.S.-China tensions over Hong Kong came to the

surface. The currency benefited from a flight to safety as Beijing threatened to

retaliate if a Hong Kong bill passed by U.S. House of Representatives is

enacted. The document would put a question mark over the city's special trading

status, binding it with an annual assessment of Hong Kong's autonomy from

Beijing. It now awaits review by the Senate.

- USD/JPY slipped 21 pips and last trades at Y108.66. Bears look for a further

dip through the previous resistance zone of Y108.48-47, towards the 23.6%

retracement of this month's rally at Y108.33. A close in the red would snap the

pair's five-session winning streak. Meanwhile, bulls keep an eye on Y108.90,

where the rate peaked yesterday. A rally above would expose the 200-DMA, which

intersects at Y109.07.

- On the data front, Friday's release of Japanese CPI takes focus.