USD/JPY has shed 9 pips so far, last.....>

DOLLAR-YEN: USD/JPY has shed 9 pips so far, last deals at Y106.66.

- The pair round tripped from a session high of Y105.58 in Tuesday's Asia trade,

before fading into Europe. The release of better than exp. Core CPI out of the

U.S. triggered a brief uptick, but the main twist occurred as U.S. Pres Trump

informed that Washington will delay tariffs on some consumer goods from China by

three months, to avoid affecting consumers in the run-up to Christmas. The

announcement was accompanied by warm rhetoric from both sides, suggesting they

remain in touch. Risk appetite reared its head, putting a bid into USD/JPY,

which topped out just shy of Y107.00 before ticking away from highs.

Nonetheless, it finished as much as 144 pips better off.

- Bears look for a pullback through Y106.65, which represents the 76.4%

retracement of the YtD range, which seems to be providing support for now. Below

opens the 200-HMA at Y106.08. Conversely, bulls would be pleased by a topside

breach of the Y107.00 barrier.

- Today's Japanese core machine orders data will be followed by final industrial

output on Thursday. The next round of BoJ Rinban ops is scheduled for Friday.