Yesterday, revived hopes for progress....>

DOLLAR-YEN: Yesterday, revived hopes for progress in the U.S.-China trade

situation allowed USD/JPY to snap its four-day losing streak, sparked by a

hanging man candlestick pattern on Nov 28. The rate jumped in the London morning

on the back of a BBG source report suggesting the Washington and Beijing are

getting closer to an agreement on tariff rollbacks despite their divisions over

Hong Kong and Xinjiang.

- USD/JPY trades flat at Y108.85. The 200-DMA, which intersects just 2 pips

above, has capped gains so far. A firm break here would shift focus to the Nov 7

high of Y109.49. Conversely, bears need a dip under the 50-DMA at Y108.53 before

attempting a move at the Nov 14 low of Y108.24.

- Little impact on price action evident as Japanese PM Abe said that the

spending package including Y13tn in fiscal measures has been completed. The

figure probably refers to the "real water" component and had been floated in

press reports before.

- BoJ's Harada is set to speak later today, while Japanese earnings & spending

figures are due on Friday.