USD/JPY deals a handful of pips softer...>

DOLLAR-YEN: USD/JPY deals a handful of pips softer at Y107.75 at writing.

Thursday saw the JPY on the backfoot during Asia-Pac trade & into early European

hours, owing to increased optimism surrounding the impending Trump-Xi meeting,

allowing the rate to trade above Y108.00. The move was pared back throughout the

remainder of the day on the back of a combination of comments from the U.S.

administration & Chinese foreign ministry, in addition to various source reports

& what is becoming the daily combative tweet from the Editor in Chief of China's

Global Times, although once again, none of these reports outlined anything

particularly new. Bears initially target a move below yesterday's worst levels

to open up the 100-HMA/61.8% retracement of the move from Y106.78 to Y108.16 at

107.48/31. Meanwhile bulls look for a reclaim of Y108.00, which would allow them

to switch their focus to trend resistance drawn off the Apr 24 high, which comes

in at Y108.24 today.

- The traditional month-end data dump comprising of the labour market report,

industrial production and Tokyo CPI will hit shortly. While the BoJ will conduct

5-25+ Year Rinban operations and issue its Rinban plan for July.