USD/JPY dropped ~10 pips in the..........>

DOLLAR-YEN: USD/JPY dropped ~10 pips in the Asia-Pac session and last sits at

Y110.60, as risk appetite moderated somewhat after Xinhua published a commentary

piece, warning that U.S.-China "trade talks will be harder at the final stage."

This allowed the yen to shake off some of its earlier weakness, noted on the

back of warm rhetoric around Sino-U.S. trade matters, flowing from both

Washington & Beijing, after the U.S. suspended the next round of trade tariffs

scheduled to be imposed on China, as President Trump pointed to a summit with

Chinese President Xi.

- Bears look for a fall below Y110.35, where the rate bottomed on Feb 12, which

would allow them to set their sights on the 55-DMA at Y110.18. Meanwhile, bulls

look to reclaim the cloud Tenkan Sen at Y110.70 before attempting a run at the

Y111.00 figure.

- Japanese focus this week turns to industrial output due Thursday, as well as

labour mkt data, Tokyo CPI & Nikkei m'fing PMI due Friday. Elsewhere, BoJ's

Kataoka speaks on Thursday, while BoJ's Suzuki speaks on Friday.