USD/JPY last deals at Y108.44, a few.....>

DOLLAR-YEN: USD/JPY last deals at Y108.44, a few pips higher on the day. A

downside breach of Y108.00 would bring the lower 1.0% 10-DMA envelope at Y107.70

into play. Bulls target Y108.56, where the rate peaked yesterday, and a break

above the level would shift their focus to the Y109.00 mark.

- Japanese household spending missed exp., while labour & real cash earnings

were both better than forecasted, but remained in negative territory.

- The rate slipped 6 pips yesterday after round tripping from its intraday low

of Y108.03. The initial slide was inspired by flaring U.S.-Mexico trade tensions

and extended on the back of post-ECB MonPol decision USD weakness. However,

reports suggesting that U.S. tariffs on Mexico might be delayed improved risk

appetite later in the day, prompting the rate to pare most of its earlier

losses. Late doors confirmation from the White House that Mexico tariffs will go

ahead knocked the off its best levels just ahead of the close.

- Data-wise, Japanese focus next week turns to domestic GDP (f) & BoP c/a data

(p) due Monday, core machine orders & PPI due Wednesday, as well as industrial

output (f) due Friday.