USD/JPY has edged higher overnight and...>

DOLLAR-YEN: USD/JPY has edged higher overnight and last deals at Y108.87, ~10

pips higher on the session, as risk-on flows surrounding the U.S.-China trade

talks dragged the yen to the bottom of the G10 pile, allowing the rate to test

the Y109.00 level during Asia-Pacific hours. Benchmark regional stock indices

registered gains overnight, with the Nikkei 225 adding more than 1% at writing. 

- On the data front, the BoJ will take some solace in real wage growth moving

into positive territory, although average wage growth was boosted by bonuses and

other special pay. 

- Bulls focus on the psychological Y109.00 level as a break above would suggest

that a bullish reversal is in play & allow them to target the Jan 2 high of

Y109.73. Conversely, bears look for a fall through Tuesday's intraday low of

Y108.44 before challenging the Jan 7 low of Y108.02. 

- Japanese trade balance (BoP basis) comes out Friday.