Despite a weak open in the Nikkei,.......>

DOLLAR-YEN: Despite a weak open in the Nikkei, with the index holding negative

through the returning Tokyo session, USD/JPY was able to recover off its early

lows of Y112.93 to Y113.22(aided by AUD/JPY demand), though held just shy of its

opening high of Y113.24. Move up seen more of a reaction to higher UST yields.

Rate eased to Y113.02 ahead of the European open, traders noted a Y113.00 strike

option rolled off at the Tokyo cut which could have attracted, but buyers were

quick to move in, edging rate back to Y113.16 at writing. Resistance said to

remain in place above Y113.20, traders aware that Y113.25 holds the strike of an

expiring option at today's NY cut, $1.07bn, which could be providing some of the

attraction. Support remains into Y112.80, a break to expose next support at

Y112.50. Below this latter level could further pressure stale longs.