JPY is playing catch up following the....>

DOLLAR-YEN: JPY is playing catch up following the risk-off move in late NY trade

on the back of the Cohen headlines, following a session of relative

underperformance against the majority of its major peers. Earlier on Tuesday

short-covering helping USD/JPY bounce from the multi-week lows of Y109.78

printed in the Asia-Pacific session. USD/JPY bulls will have taken confidence in

the pair's recovery back above both the 200- and 100-DMAs at Y109.86 and Y110.01

respectively.

- The risk off flows in early Asia dealing Wednesday saw the pair ease to

Y110.03, before T-Notes edged back from best levels and the rate recovered to

deal at Y110.15 last, 15 pips softer on the session.

- Bulls will look to regain the Aug 20 high (Y110.68) and close above the Aug 16

high (Y111.12) to shift focus higher. Conversely, bears need a close below the

200-DMA to shift focus toward the May 29 low at Y108.11.

- Broader risk sentiment is likely to set the tone for the cross today.