Early Asia extended USD/JPY's............>

DOLLAR-YEN: Early Asia extended USD/JPY's recovery, following Tuesday's clear

above resistance at Y108.00/10, Y108.85, the level corresponding to the 50%

retracement of the recent fall from Y111.71 to Y105.99. Corrective pullbacks

were buoyed above Y108.40 before the release of better than expected US ADP

numbers, ahead of Friday's key NFP, and non-Mfg ISM provided another boost for

risk which placed further pressure on safe haven currencies. JPY came under

fresh pressure, with USD/JPY able to move through Y108.85 but ran into headwinds

on the approach to Y109.00 (high Y108.98). However, pullbacks have now found

support at the Y108.85 level, which of holds could provide a base to take out

the Y109.00 level. A break below to allow for another move back toward Y108.40.

A break and clear of Y109.00 to expose the 61.8% level at Y109.52.

- Risk outlook remains the key driving force for direction.