USD/JPY added 24 pips overnight and......>

DOLLAR-YEN: USD/JPY added 24 pips overnight and last trades at Y110.87, as

Japanese trade balance data showed a wider than exp. deficit and a larger than

exp. decline in exports, owing to a shrinking demand from China, while the

Nikkei 225 finished 0.60% higher.

- Worth mentioning PM Abe, Econ Min Motegi, FinMin Aso & BoJ Gov Kuroda spoke in

Japanese Diet. The gov't officials mentioned the ongoing dialogue with the U.S.

re: trade & currency matters. Aso noted that he has never spoke directly about

FX with Mnuchin, while Kuroda said he does not believe that the current BoJ

policies are weakening the yen.

- The Feb 14 YTD high of Y111.13 is back in play and provides the initial

bullish target. The next layer of resistance above is provided by the upper

Bollinger band (2%) at Y111.20. Meanwhile, bears look for a fall back below the

100-WMA at Y110.79, breached overnight, before challenging the 100-HMA, situated

a further 20 pips below.

- Japanese focus this week turns to Nikkei m'fing PMI due tomorrow, as well as

national CPI & BoJ Rinban ops due Friday.