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USD/JPY edged higher overnight, as.......>

DOLLAR-YEN: USD/JPY edged higher overnight, as optimistic comments re: the
ongoing Sino-U.S. trade negotiations revived risk appetite, putting the yen on
the defensive. The rate last sits at Y111.71, 5 pips higher on the day. Chinese
President Xi called for a quick conclusion to the text of a bilateral trade
accord with the U.S. and noted substantial progress in talks with Washington;
elsewhere, Chinese VP Liu said that "a new consensus [with Washington] has been
- The pair tested the Y111.80 mark overnight, but failed to break above. A
breach of the level would open up the Mar 15/06 high of Y111.90/92, followed by
the Mar 5 YTD high of Y112.14. On the downside, the initial layer of support is
provided by the 200-DMA at Y111.49, breached yesterday, ahead of Y111.21, which
represents Wednesday's low. Also worth noting $1.36bn worth of options with
strikes at Y111.00 expire at today's 1000ET NY cut.
- Japanese highlights of the next week include BoP data due Monday, PPI & core
machine orders due Wednesday, as well as the usual BoJ Rinban ops. BoJ Gov
Kuroda will speak on Monday & Wednesday.

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