U.S.-China Jitters, U.S. Fiscal Matters Support JPY

The yen leads gains in G10 FX space, as Japan returns from a long weekend amid
a cautious mood. Sino-U.S. tensions continue to worry participants, with
China protesting a "forced entry" of U.S. officers to its Houston
consulate. Elsewhere, the U.S. arrested a Chinese researcher,
who allegedly failed to disclose her military background.
U.S. fiscal matters have also provoked some concerns,
as lawmakers from both sides of the aisle struggle
to reach compromise. USD/JPY trades -22 pips at Y105.92 as we type.

• In local press, Jiji reported that Japan has asked domestic companies
  to have 70% of their workforce adopt telework.
• Bears look for a dip through Jul 24 low of Y105.76, which would
  expose the 61.8% retracement of the Mar 9 - 24 rally at Y105.21.
  Bulls need to take out Jul 20 high of Y107.53 to gain some impetus.
• BoJ Summary of Opinions, final capex & company sales/profits
  headline in Japan today.