JPY continues to benefit from safe.......>

DOLLAR-YEN: JPY continues to benefit from safe haven flows, with gold & U.S.

Tsys also adding to their respective Tuesday advances in early Asia trade. Rate

last deals 25 pips or so lower at Y107.62.

- The latest tweaks to the BoJ's Rinban operations pointed to the Bank's desire

for a steeper JGB curve, but resulted in some modest JPY strength (some will

likely continue to point to "stealth tapering", even though the tweaks amount to

no net change in purchase amounts on a monthly basis).

- Bears filled the gap from this week's open on Tuesday (albeit not on a closing

basis), with the sell-off extending back through the 200-HMA in Asia hours.

Bears now target the nearby June 28 low located at Y107.56, which was briefly

breached earlier in the session. Below here would allow them to focus on the

June 26 low at Y107.10.

- Worth highlighting the chunky option expiries at each of the nearest big

figures, with the following amounts set to roll off at today's 10AM NY cut:

Y107.00($2.52bln), Y108.00($2.07bln)