USD/JPY has round tripped from early.....>

DOLLAR-YEN: USD/JPY has round tripped from early session highs at Y111.44 and

last trades flattish at Y111.36. The Nikkei 225 futures are pointing to a higher

open, following strong global equity performance yesterday.

- The pair added 49 pips Monday, as positive risk sentiment weighed on demand

for safe haven assets. Although disappointing retail sales data from the U.S.

briefly pulled the rate into negative territory, subsequent releases of U.S. ISM

survey and construction spending put a fresh bid into the pair. The fact that

the S&P 500 charted a 'golden cross' for the first time since early 2016 also

supported recovery.

- As highlighted in our latest Analysis e-mail, the rate is currently generating

bullish sentiment on a short/medium term basis, according to the MNI FX

Technical Signal Monitor. A lift through the 200-DMA/down trendline resistance

at Y111.58/57 would open up the previously broken channel base

support-turned-resistance at Y112.12. Conversely, bears look for a return below

the 100-DMA at Y111.01, breached during yesterday's recovery.

- Japanese monetary base figures come out within 5 minutes or so.