Extended recovery highs to Y110.73 in....>

DOLLAR-YEN: Extended recovery highs to Y110.73 in Asia, extending the move seen

in NY that saw a high of Y110.69. Fix demand, along with Aud/Jpy buys

(Australian jobs report), fueled the early move but traders met headwind selling

which countered. Some talk that this sell interest is seen scattered toward

Y111.00. Rate settled back onto Y110.40 into Europe. A brief jump to Y110.57

seen early Europe but rate since returned to the Y110.40 area. All focus turned

toward this afternoon's release of US CPI. Market median 0.3%mm, 1.8%yy, ex-food

and energy 0.2%mm, 1.6%yy. GS notes that market seen looking for a rebound in

inflation, following 6 consecutive weak prints, though add that September CPI

has only surprised to the upside 3 times since 2005. Strong release and a break

of Y110.90/111.00 to open a move toward Y111.60-75. Technical support has risen

to Y110.15, stronger at Y109.90, a break of the latter to disappoint bulls.