USD/JPY has turned bid around the........>

DOLLAR-YEN: USD/JPY has turned bid around the Tokyo fixing after little reaction

to the softer than expected Japanese household spending data & stronger than

expected wage data. It is worth noting that the breakdown of the wages data

showed that the average wage growth in Japan surged in May on a calendar factor

and a drop in the share of lowly paid part-time workers, following a temporary

jump in March and a slowdown to below the recent trend growth in April.

- The JPY will be particularly sensitive to the ongoing trade spat between China

& the U.S., with markets awaiting China's response to the U.S.' imposition of

tariffs.

- Upside interest comes in at Y110.85/95 (hourly resistance), while initial

downside interest is seen at Y110.28/26 (Jul 04 low/Tenkan line, 50%

Y109.37-111.14).