USD/JPY added 28 pips overnight, last....>

DOLLAR-YEN: USD/JPY added 28 pips overnight, last trades at Y108.15. A leg

higher, which took the rate above Y108.00, was registered at the Tokyo equity

open as the Nikkei 225 started on a front foot. Tech shares were notably bid as

Morgan Stanley lifted their outlook for Japanese chip equipment makers, while

the press circulated optimistic reports re: Huawei/China-U.S. trade matters.

Japanese benchmark equity index extended gains through the session, keeping a

lid on JPY. Another leg higher in USD/JPY was noted late doors as London traders

came in, digesting overnight news flow & market activity (no fresh catalysts

were noted).

- Bulls look to the descending trendline at Y108.31. A violation of that level

would shift focus to the 50-DMA at Y108.50. Bears look for a retreat into

sub-Y108.00 territory, where the initial layer of support is provided by the

Y107.82-80 region, which hosts the lows of Jul 12-16.

- Flash Jubun Bank PMI readings are due tomorrow, with Tokyo CPI coming up on

Friday. The next round of BoJ Rinban ops is scheduled for Friday.