USD/JPY headed higher Monday as..........>

DOLLAR-YEN: USD/JPY headed higher Monday as broader risk appetite improved on

the back of optimistic reports surrounding global efforts to produce a vaccine

for the novel coronavirus. Moderna reported positive results from an initial

small-sample study on human volunteers, while Chinese Pres Xi promised that any

Covid-19 vaccine developed in China will be made a global public good.

- The rate is little changed at Y107.33. A clearance of the 50-DMA/May 11 high

at Y107.76/77 would clear the way to Apr 16 & 17 highs of Y108.08. On the flip

side, bears look for a retreat through May 13 low of Y106.74, towards May 11 low

of Y106.40.

- BBG has just ran a headline from the Nikkei noting that Japan "considers

saying economy entered recession". Monday's preliminary GDP data for Q1

indicated that Japan has entered its first recession since 2015.

- Coming up in Japan this week we have final industrial output (today), core

machine orders (Wednesday), trade balance & Jibun Bank M'fing PMI (Thursday), as

well as CPI (Friday).