USD/JPY gapped lower at the open as......>

DOLLAR-YEN: USD/JPY gapped lower at the open as the Saturday drone attack on key

Saudi Aramco facilities, which removed ~5% of global oil production, curbed risk

sentiment early doors. U.S. President Trump was quick to authorise the release

of U.S. petroleum reserves if needed, which sapped some of that early strength

from JPY. Very muted reaction has been noted as Trump said that the U.S. is

"locked and loaded" to respond once Saudi Arabia identifies the culprit.

- That said, the pair trades at Y107.79, 30 pips worse off, prompting bears to

look for a further dip through the cloud top at Y107.60. Below there opens

Y107.46, the 61.8% retracement of the Aug fall, which has provided support so

far. Meanwhile, with the initial gap now closed, bulls look to clear the Y108.00

barrier. A break would expose Friday's/Aug peak at Y108.26.

- As a reminder, Japanese markets are shut due to a national holiday today.

Trade balance (Wednesday), BoJ MonPol decision (Thursday) and national CPI

(Friday) provide the highlights this week.

- This occurs after USD/JPY charted a Doji candlestick on Friday; a modest

sell-off into Europe was countered as U.S. advance retail sales topped exp.