USD/JPY last sits at Y107.95, 22 pips....>

DOLLAR-YEN: USD/JPY last sits at Y107.95, 22 pips lower on the day, as modest

risk-off flows triggered by a lack of a decisive breakthrough in Sino-U.S. trade

talks aided the yen. The Nikkei 225 shed ~1.3% & JPY climbed atop the G10 pile,

with the safe haven currency drawing support from USD/JPY selloff driven by

Japanese institutions after the Tokyo fix. Sources noted that exporters had to

sell USD/JPY because their option structures got knocked-out, while Japanese

megabanks were seen cleaning up their losses. 

- Bears now look for consolidation & a close below the psychological Y108.00

level. Initial support is located at the Jan 4 low at Y107.52, ahead of the

lower Bollinger band (2%) at Y107.17. On the topside, bulls need a return above

Y108.00 before targeting Y109.00, which capped the rate's gains yesterday. 

- Japanese trade balance (BoP basis) is due tomorrow.