USDJPY touched session lows of 109.70 after.....>

YEN: USDJPY touched session lows of 109.70 after the Washington Post reported

that US Special Counsel Mueller has raised the possibility of a presidential

subpoena in a tense meeting with Trump's legal team. USDJPY last at ~109.85,

EURJPY at ~131.75.

- As a reminder Japanese markets will be closed on Thursday & Friday, so expect

lower liquidity in JPY crosses.

- Sources point to offers above 110.00, and they believe that fresh bids should

occur near 109.45/50.

- USDJPY bulls take comfort in the close above the 100-WMA (109.48) with

immediate bullish focus on Y110.22-49 where the 200-DMA and 55-WMA are located.

Overbought studies remain the key concern for bulls. Bears now need a close

below the 100-WMA to gain breathing room.

- EURJPY's 55-DMA (131.52) confirmed significance having provided support on

Monday on the sell-off from failures above the 100-DMA (132.97) & 21-WMA

(132.84). Bears need a close below the April 05 low (131.05) to confirm traction

below the 55-DMA.