Dollar-yen slipped back under Y112.00....>

DOLLAR-YEN: Dollar-yen slipped back under Y112.00 in early Asia, pressured by

Eur-Yen following reports German coalition talks had collapsed, the pair touched

extended lows of Y111.89. The dip attracted fresh demand interest, rate pared

losses to largely consolidate either side of Y112.05. Just ahead of the Asia low

there are very large option expiries today at Y111.90/00 ($1.2bn) which could

contain. Resistance is seen at Y112.22/36 (Asia high, 55-dma). Dollar-yen last

Y112.06.

* Very light on the US calendar today with main focus on Leading Indicators at

1500GMT. The index of leading indicators is forecast to rise by 0.6% in October.

Positive contributions are expected from stronger consumer expectations and

stock prices, as well as the reversal in jobless claims back to normal levels

following the sharp September run-up after the hurricanes.

* Option expiries for today's NY cut at Y111.90-112.00($1.2bn),

Y112.30($2.35bn), Y112.50($620mn), Y112.60($330mn), Y112.75-80($406mn).