USD/JPY has erased its earlier modest....>

DOLLAR-YEN: USD/JPY has erased its earlier modest losses and last trades flat at

Y106.62.

- Broad recovery in risk sentiment lent support to the pair at the start of the

week. A rally in USD/JPY was noted into the European morning, with gains

promptly extended to Y106.70. The pair then gave away some ground, before

climbing again on the back of a firmer greenback, propped up by a combination of

higher U.S. Tsy yields & relatively hawkish comments from Fed's Rosengren.

- Bulls look for a clean break above the 76.4% fibo retracement of the YtD

range, intersecting at Y106.65. This would turn focus to the Aug 13 high of

Y106.98. Bears eye the 100-HMA at Y106.25, followed by the Y106.00 barrier.

- MNI understands that the BoJ is unlikely to act aggressively to curb lower JGB

yields, seeing recent market moves as part of a global trend and consistent with

downside economic risks.

- Citing Commodity Futures Trading Commission data, BBG writes that speculators

haven't been as bullish on the yen as they are now since Nov 2016.

- Japanese Jibun Bank m'fing PMI hits on Thursday & CPI is due on Friday.