USD/JPY eased off initially, as a........>

DOLLAR-YEN: USD/JPY eased off initially, as a modest risk-off feel came into

play. A soft opening for the Nikkei 225 & a downtick in headline Aussie

unemployment rate provided more fuel to the pre-existing risk-off flows,

pressing the rate to its session low of Y109.34. However, USD/JPY pared some of

its earlier losses, as the risk-off mood moderated.

- USD/JPY last seen at Y109.48, 12 pips worse off. Initial support noted at

Y109.02, which limited losses on Monday, and a break below would expose the

lower 1.0% 10-DMA envelope at Y108.89, which coincides with the lower Bollinger

band (2%). Conversely, above yesterday's peak at Y109.70 opens the Y110.00 mark.

- RTRS reported that Japanese gov't weighs "revising down its economic

assessment in a report due next week as an intensifying Sino-U.S. trade war

takes a toll on exports and factory output."

- Elsewhere, an influential ruling party MP Hagiuda said that Japan should

assess the BoJ Tankan survey, due on Jul 1, before deciding whether to go ahead

with planned sales tax hike.

- Japanese focus turns to BoJ 10-25+ Year Rinban operations, due tomorrow.