The yen was on a back foot overnight.....>

DOLLAR-YEN: The yen was on a back foot overnight. A slide in the Nikkei 225

merely cushioned the currency's decline and dragged USD/JPY off of highs after

the rate briefly showed above Y108.00. USD/JPY last trades at Y107.99, 8 pips

better off. 

- Japanese Econ Min Sego said that export controls are not a matter for

international organizations, amid flaring trade tensions with South Korea.

Elsewhere, an ex-BoJ off'l told BBG that the BoJ would back the gov't's stimulus

package that may be announced in Oct when sales tax hike takes effect.

- The 23.6% fibo retracement from Y112.40 to Y106.78, located at Y108.11,

continues to prove hard to overcome as the rate lost momentum just shy of the

level. A return above the Y108.00 mark followed by a break above Y108.11 would

open the 100-HMA at Y108.20. Bears look for consolidation below Y108.00 before

attempting a run at the key trendline support, which intersects at Y107.18.

- Japanese trade balance comes out on Thursday, while national CPI figures will

be released on Friday. No more BoJ Rinban operations are planned this week.