USD/JPY has shed 7 pips and last deals...>

DOLLAR-YEN: USD/JPY has shed 7 pips and last deals at Y108.73. Escalating Hong

Kong tensions may have applied a modicum of pressure, while investors are on the

lookout for clues re: U.S.-China trade relations.

- In the local data, Q3 housing loans rose 2.9% Y/Y vs. the prior +2.2%. 

- Yonhap reported that Defence Ministers of Japan and South Korea discussed the

possibility of extending of the bilateral intelligence-sharing pact, after the

agreement seemed to fall prey of the ongoing historical/trade spat.

- The initial bearish target is provided by the 50-DMA & Nov 14 low, which

coincide at Y108.24. Meanwhile, bulls look for a break above the 200-DMA at

Y109.00 before targeting the Oct 30 & Nov 12 peaks, both at Y109.29.

- To recap, Friday saw the rate advance thanks to a risk-on reaction to comments

from White House advisor Navarro, who said that the trade deal with China is

very close, and a phone call between top trade reps from Washington and Beijing.

Worth noting Navarro's remark that the deal "is not done yet."

- Points of note in this week's Japanese docket are trade balance (Wednesday),

as well as national CPI & flash Jibun Bank m'fing PMI (Friday).