USD/JPY was edging lower, towards........>

DOLLAR-YEN: USD/JPY was edging lower, towards neutral levels, when a BBG

headline pointing to Denmark's agreement re: EUR400bn in grants in the EU's

Covid-19 fiscal package very briefly pushed it a handful of pips higher. The

rate last deals at Y107.05, little changed, with eyes on the aforementioned EU

leaders' summit & the coronavirus situation in several hot spots.

- Tokyo's case count remains under scrutiny, with the number of new patients

printing at 188 on Sunday, the first reading below 200 in four days.

- Elsewhere, Chief Cabinet Sec Suga said that legal regulations enabling the

authorities to introduce lockdown measures should be change to ensure

compensation for firms ordered to shut down. Meanwhile, Japanese prefectural

govs urged the gov't to make it easier to enforce business closure requests.

- Bulls look for a break above Y107.43, which represents the high of Jul 14,

before targeting Jul 7 high of Y107.79. Bears need a fall through Jul 15/10 lows

of Y106.67/65 before taking aim at Jun 23 low of Y106.07.

- Japanese trade balance hits the wires today, with CPI coming up on Tuesday &

flash Jibun Bank PMIs due Wednesday.