USD/JPY trades at Y110.15, after a brief look...>

YEN: USD/JPY trades at Y110.15, after a brief look below the figure on the back

of a bout of risk off flows that lacked any notable catalyst. The recovery was

perhaps aided by the fact that the USD/CNY fix was not quite as high as most had

estimated.

- USD/JPY risk reversals have taken a hit on the back of yesterday's trade war

headlines, with both the 1- and 3-Month 25 delta measures falling to levels not

seen since late March, perhaps indicating that markets had been underestimating

the chances of full scale trade war. Both measures now trade back from worst

levels, but remain notably lower.

- The pair continues to operate below 110.23 (200-dma), with bears eying Y109.53

(low June 19).

- AUD/JPY found support around Y81.00 & rebounded to trade a touch higher on the

session, although it now operates off of best levels. Resistance seen at Y81.89

(Low June 18 now resistance).

- Participants await comments from BoJ Governor Kuroda, set to be made in

European hours from the ECB's Sintra forum.