USD/JPY is starting out in Tokyo trade slightly bid, supported in the high end of the 107 handle despite a risk-off theme surrounding the latest Iran/UK and US risk which heightened at the end of last week. The Federal Reserve is coming up at the end of this month as well and the dialled down prospects of a 50 basis point rate cut has contributed to the Dollar's firmness. Firstly, the news that the UK's Stena Impero tanker was taken by Iran escalating tensions between Tehran-Washington and the UK. Weekend news has reported through various media that the UK has convened two Cobra meetings to discuss its response, ... (full story)