USD/JPY has inched lower and last sits...>

DOLLAR-YEN: USD/JPY has inched lower and last sits at Y107.69, 8 pips worse off.

- Bears look for a dip below Y107.53, the 23.6% retracement of the Aug 26-Sep 18

rally. Bulls eye the 100-DMA at Y107.84, ahead of the next round figure above.

- The rate started on the front foot yesterday, pushing to its Asia-Pac high of

Y107.43 as BBG reported that China is preparing more purchases of U.S. pork.

Signals of an improvement in the U.S.-China trade situation continued to provide

support, with U.S. President Trump declaring that a bilateral deal may come

"sooner than you think." Better than expected new home sales data and relatively

hawkish comments from Fed's Evans (normally a dove, said he doesn't see the need

to trim interest rates further) only fuelled the rally, as they underpinned the

greenback's broad-based outperformance. USD/JPY closed 70 pips higher.

- Participants await the resolution of U.S.-Japan trade talks. Leaders from both

countries signed off on a limited version of a touted comprehensive deal for

now, with potential tariffs on Japanese autos posing a major sticking point.

- Focus today turns to the next round of 5-10 Year BoJ Rinban ops and comments

from BoJ Governor Kuroda. Tokyo CPI is due for release tomorrow.