FX Action: USD-JPY has traded moderately firmer
FX Action: USD-JPY has traded moderately firmer, to the three-day highs in the upper 112.0s. Most Yen crosses have also lifted, too, as the Japanese currency came under pressure as Asian stocks managed to claw back some lost ground after a rough start, although most have remained in negative territory. The Nikkei 225 closed 0.4% for the worse, while China's SSE is showing a loss of 0.1% as of the late PM session. S&P 500 futures are up 0.5% after the cash index close out on Wall Street with a hefty 1.8% loss. Sino-U.S. trade tensions remain on the boil, with the Trump administration saying China had "no altered" its alleged predatory trade practices. In data, Japan's all-industry activity index contracted by 0.9% m/m in September. USD-JPY's fundamentals (yield differentials and the associated contrast between Fed and BoJ policy paths) remain supportive, though periodic episodes of risk aversion have been an intermittent offsetting bearish force. USD-JPY has resistance at 113.00-05, which encompasses the prevailing situation of the 50-day moving average. Support comes in at 112.60-63.