USD/JPY has shed 10 pips in early Asia...>

DOLLAR-YEN: USD/JPY has shed 10 pips in early Asia trade and sits at Y108.36,

slightly away from lows. JPY is on the front foot alongside its safe haven peer

CHF, while USD remains heavy. Bears look to the 21-DMA at Y108.07 as well as the

round figure below. Bulls eye Y108.93, which represents the 38.2% retracement of

Y112.40-Y106.78, ahead of Y109.00, which kept a lid on gains yesterday.

- Fed Chair Powell's appearance in the U.S. Congress yesterday allowed the pair

to slide 39 pips on a daily basis as it sent USD tumbling across the board.

Powell reinforced expectations of a July cut from the Fed by highlighting trade

uncertainties, tepid global growth and a sub-target inflation in the U.S. During

the Q&A Powell also said that solid jobs numbers did not change the overall

outlook, while he also failed to rule out a 50bps cut.

- South Korean Foreign Min Kang informed U.S. State Sec Pompeo about his

country's concerns over the ongoing trade spat with Japan. Envoys from Japan and

South Korea are set to meet for talks on Friday, but no breakthrough is exp.

- Japanese calendar very light today, Friday will see the release of final

Japanese industrial output, as well as 1-25+ Year BoJ Rinban ops.