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USD/JPY last seen at Y109.55, a touch....>

DOLLAR-YEN
DOLLAR-YEN: USD/JPY last seen at Y109.55, a touch higher on the day. Bears
continue to eye the May 24/May 14 highs of Y109.75/77, ahead of the
psychological Y110.00 mark. Bears look to Y109.28/27, which registered lows
yesterday and on Friday, followed by the May 13 multi-month low of Y109.02.
- A higher open from the Nikkei 225 provided some support to USD/JPY before it
eased off, with the pullback accelerated by light risk-off flows triggered on
the back of a slightly softer than expected CNY fix from the PBoC. After
touching the overnight low of Y109.43, USD/JPY staged a recovery (noted over the
last ~40 minutes), topping out at Y109.57.
- A batch of Japanese officials spoke overnight. EconMin Motegi refused to
comment on whether a trade deal with the U.S. is possible by August, but noted
that he understands the latest remarks by U.S. Pres Trump as an indention to
accelerate talks. Elsewhere, Japanese FinMin Aso said that Trump has not
mentioned FX matters since his meeting with PM Abe over two years ago.
- Friday will see the release of Japanese industrial production (f),
unemployment, retail sales & Tokyo CPI. BoJ Gov Kuroda speaks tomorrow.

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