JPY is bid as Iran's attack on an........>

DOLLAR-YEN: JPY is bid as Iran's attack on an Iraqi military base hosting U.S.

troops has triggered flight to quality. USD/JPY has dropped 53 pips and trades

at Y107.92 at typing. Geopolitical evens have overshadowed worse than expected

Japanese earnings data, which revealed decline again.

- The 100-DMA, which intersects at Y108.26, and the psychological Y108.00

barrier already gave way. The Jan 6 multi-month low/38.2% retracement of the Aug

26 - Dec 2 rally at Y107.77/72 provides the next layer of support, followed by

the 50% retracement of that rally at Y107.10. Bulls need to reclaim the 100-DMA

before attempting a move at the 200-DMA/Tuesday's high of Y108.62/63.

- This comes after USD/JPY finished a touch higher on Tuesday as positive

surprises in U.S. trade balance, ISM non-m'fing survey & factory orders

bolstered the greenback.

- Japanese household spending data is due on Friday.