EUR/JPY trades at Y128.95 sticking to a....>

EURO-YEN: EUR/JPY trades at Y128.95 sticking to a tight range in the early

Asia-Pacific session, having recovered from yesterday's drop, which saw the

cross register its lowest level since Sep 10. 

- The pair registered session lows on Tuesday after Italy's budget was rejected

by the EU Commission, with Rome seemingly reluctant to back down, which added

extra weight to the cross, on top of the early risk off flows. This factor

failed to exert a lasting impact, as it was largely expected & already priced in

by participants, while U.S. equities recovered during the NY afternoon, allowing

the cross to move back from lows. 

- Bulls need a break above Y130.14 to challenge the 200-DMA at Y130.50, while

bears keep an eye on the long-term fibo support at Y128.52 ahead of targeting

the Oct 9 low at Y127.87. 

- EZ points of note this week include the ECB MonPol decision due Thursday & EZ

flash PMI data due later today, while the Japanese docket is rather thin.