USD/JPY last deals at Y109.16, 10 pips...>

DOLLAR-YEN: USD/JPY last deals at Y109.16, 10 pips better off. The rate has

picked up a modest bid in the lead-up to the Tokyo fix, in sync with the Nikkei

225. The yen is the worst G10 performer at the margin.

- The pair slipped yesterday as Hong Kong turmoil & cooling optimism re:

U.S.-China trade talks inspired caution. The European afternoon brought some

relief, but the rate eased off again into the close.

- Bulls look for a break above the Oct 30/Aug 1 highs of Y109.29/32 before

setting their sights on the high of Nov 7 at Y109.49. Meanwhile, the initial

layer of support is provided by the 200-DMA at Y109.03. A breach of the level

would encourage bears to target the YtD mid-point/channel support at Y108.43/40.

- Japanese Econ Min Kajiyama criticised South Korea for linking a bilateral

intelligence-sharing pact to export issues, adding that Tokyo's export control

move is consistent with WTO rules.

- Later in the week, we will see Japanese PPI (Wednesday), flash Q3 GDP

(Thursday) and final industrial output (Friday).