USD/JPY has ticked higher, last trades...>

DOLLAR-YEN: USD/JPY has ticked higher, last trades +6 pips at Y108.98. A gentle

push higher has allowed the rate to break above where it peaked on Monday. The

move may have stemmed from a breach of the 200-DMA, which kicks in at Y108.94.

- To recap, the pair picked up a bid from the off on Monday as China promised to

address IP theft, one of the key issues in trade talks with the U.S. A positive

showing from global equity markets, with S&P 500 printing a new record high,

further sapped strength from the yen. Finally, Monday was a Gotobi day,

typically associated with USD/JPY demand from Japanese importers. As a result,

the yen underperformed each of its peers from the G10 basket.

- Bulls look for a rally above the 61.8% retracement of the YtD range at

Y109.37, which would leave the Nov 7 cycle high of Y109.49 exposed. Bears keep

an eye on the 50-DMA at Y108.33, ahead of the Nov 21/14 lows of Y108.28/24.

- Japanese services PPI is due shortly. Later in the week, focus turns to retail

sales (Thursday), as well as Tokyo CPI, unemployment and flash industrial output

(Friday). BoJ's Sakurai will speak on Wednesday.