FOMC delivered the much expected 25bps...>

DOLLAR-YEN: FOMC delivered the much expected 25bps cut at Wednesday's FOMC

meeting, but the accompanying statement dampened down thoughts that another one

would be coming along close behind. Comments acted to boost the USD and took

USD/JPY to a high of Y109.00 in NY before it eased back to Y108.75/80 into the

close. Opening Asia extended the pullback to Y108.71 before Tokyo opened with a

strong demand for the USD. The move through Y109.00 was reported to have been

fairly orderly, no major stops seen triggered though rate was able to move up to

Y109.32 before momentum faded. Rate dipped to Y109.12 before it settled between

Y109.15-25 into Europe. Asian traders have suggested that option expiry interest

around Y109.00 could keep rate anchored. 

- Option expiries for today's NY cut, Y108.50-65($1.19bln),

Y109.00-10($2.07bln), Y109.30($825mln)

- Focus on US Weekly Jobless Claims and Mfg PMI and Mfg ISM releases. NFP looms

Friday. 

- Support Y109.00, Y108.70. Resistance Y109.32, Y109.50.