• USD/JPY rallies 1.1% in early Asia on Trump's reconciliatory comments

• Trump says China tariffs will not be anywhere near 145%

• Says will be very nice to China will set terms if they do not do trade deal

• Says US will set terms if China does not do a trade deal

• Trump: No plans to fire Fed Chair Powell, but wants lower rates

• Bessent sees de-escalation in US-China trade tensions, talks to be 'a slog'

• Fed's Kugler, citing inflation risks, supports steady policy rate

• US, Japan move closer to outline of trade deal, source says

• S&P E-Mini +1.75% as risk rallies; Asia USD range 141.56-143.21

• Tuesday range 139.885-141.675
Japan's core inflation accelerates:

(Krishna Kumar is a Reuters market analyst. The views expressed are his own.)