USD/JPY has posted a leg lower after.....>

DOLLAR-YEN: USD/JPY has posted a leg lower after U.S. Senate passed a bill aimed

at supporting Hong Hong protests. The legislation may further complicate the

meandering U.S.-China trade talks, which inspires a modicum of risk aversion.

- The rate last deals at Y108.43, 11 pips worse off. It has just breached the

channel support drawn off the Aug 26 low, which limited losses on Tuesday. The

next downside target is provided by the 50-DMA/Nov 14 trough at Y108.27/24 and

below there would open the Nov 1 low of Y108.89. Bulls need to return into the

channel before attempting a move at the Y108.98 200-DMA.

- To recap, trade war uncertainty & Hong Kong tensions weighed on the pair early

doors on Tuesday, but this dissipated as European equities kicked off on the

front foot. The rate then slid through the rest of the day, with a knee-jerk

higher seen as a BBG story suggested that the U.S. and China may "explore tariff

reliefs using failed proposals from May" but U.S. Pres Trump promptly poured

cold water on resulting enthusiasm.

- Looking into the local docket, we have trade balance data coming up later

today with flash Jibun Bank m'fing PMI due on Friday.