USD/JPY was stuck in a trading range.....>

DOLLAR-YEN: USD/JPY was stuck in a trading range yesterday but finished

marginally in the red, snapping a five-session winning streak. China's threats

to retaliate over U.S. House's legislative activity re: Hong Kong pressured the

pair in Asia-Pac hours. Subsequent recovery was erased after U.S. retail sales

undershot expectations, but the latter losses were also short-lived.

- The rate currently sits at Y108.71, a touch lower on the day.

- Yesterday saw the formation of a hanging man candlestick pattern, which puts

bears on alert, albeit more signals are needed to herald a bearish reversal. A

dip under the prior resistance zone from Sep 17, Sep 18 & Oct 1 peaks at

Y108.48/47 would be promising, drawing attention to the 23.6% retracement of the

Oct 3 - 15 rally at Y108.33. Bulls would be encouraged by a penetration of the

Oct 15 peak at Y108.90, which would expose the 200-DMA at Y109.07.

- Japan boosted its holdings of U.S. Tsys to $1.17tn, the highest level in four

years, per the latest TICS data. Tokyo remained the top holder of U.S. debt,

after overtaking China in June.

- Data-wise, Friday will see the publication of Japanese CPI data.