USD/JPY has dropped 7 pips on the back...>

DOLLAR-YEN: USD/JPY has dropped 7 pips on the back of headlines stating that

"the U.S. moves to impose duties" on currency manipulators, last deals at

Y109.54. This occurs ahead of the release of Japanese CPI data, due at the

bottom of the hour.

- Bears need a break below Y109.46-48, which registered lows on May 9, 10 & 21,

before taking aim at the multi-month low of Y109.02. Bulls look for a jump above

Y110.31-36, which hosts yesterday's high, the 38.2% retracement of the move from

Y112.40 to Y109.02 & the uptrend support-turned-resistance.

- JPY was the main beneficiary of yesterday's risk-off flows, finishing atop the

G10 pile. Risk appetite was dented by the latest developments in Sino-U.S.

standoff, which knocked global equities on the head. The downside move in

USD/JPY was accelerated by disappointing flash PMI data from the U.S. & falling

U.S. Tsy yields, which pressured USD in the second half of the day.

- Focus this weekend will fall on U.S. Pres Trump's trip to Japan, albeit BBG

sources suggested that the visit in unlikely to yield a trade agreement.