Tuesday saw USD/JPY punch through the....>

DOLLAR-YEN: Tuesday saw USD/JPY punch through the Y110.00 level for the first

time since May, amid optimism surrounding well-documented developments in

U.S.-China matters. A fresh round of buying emerged into the Tokyo fix, pushing

the rate to its intraday high of Y110.21. The London morning brought some

reprieve to the bears, as the rate pulled back to neutral levels. It edged

slightly higher thereafter, but was limited by reports suggesting that U.S.

tariffs on China will stay in place until after the presidential elex.

- USD/JPY last seen -13 pips at Y109.87, just above session lows as participants

show concern about the report re: U.S. tariffs, a RTRS source piece pointing to

the White House's new plans to target Huawei & a WSJ report stating that the

U.S. and China are set to continue their battle over technology.

- Bears look for a deeper pullback through Monday's low of Y109.45. The next

layer of support comes at Y109.06, the 50-DMA. Bulls need to clear the Y110.00

level before targeting Y110.21, which limited gains on Tuesday.

- The focus turns to BoJ Gov Kuroda's address & flash machine tool orders, due

today. Core machine orders & PPI come out Thursday.