USD/JPY has slipped 8 pips thus far......>

DOLLAR-YEN: USD/JPY has slipped 8 pips thus far and last sits at Y109.23, as

Sino-U.S. trade spat continues to support safe haven FX.

- Monday saw the rate register losses from the off, as markets absorbed news

flow from over the weekend, pointing to a serious stalemate in Sino-U.S. trade

talks. USD/JPY drifted lower through the Tokyo session & in the London morning,

albeit failing to convincingly breach Y109.60. In the London afternoon, China's

announcement of retaliatory tariffs on U.S. goods, to take effect from June 1,

delivered a major blow to risk appetite, sending USD/JPY to Y109.10. 

- The pair trimmed some losses into the close, as U.S. Pres Trump said that

there is no decision yet re: another round of tariffs on China, but still

finished 65 pips worse off, with JPY comfortably atop the G10 pile.

- Below Y109.00 would open up the 50% fibo retracement of Y99.02-Y118.66 at

Y109.84. Bulls eye the lower Boll band (2%) & 1.0% 10-DMA envelope at Y109.45.

- Japanese BoP data will be released later today. Money stock and PPI figures

will follow on Wednesday and Thursday respectively, while the usual BoJ Rinban

ops will also draw attention.