Risk aversion faded to a degree..........>

DOLLAR-YEN: Risk aversion faded to a degree overnight (excluding equities), as

US Tsy yields ticked higher, although they still remain well shy of Friday's

closing levels. USD trades mixed against the majors, while JPY has unwound the

bulk of its early gains. Worries over Italy continue to circle, with little in

the way of fresh fundamental catalysts apparent in the Asia-Pacific session.

USDJPY printed a low of 108.35, failing to threaten Tuesday's low, with the

cross last dealing at 108.65.

- Initial support comes in the form of the 50-DMA at 108.29, followed by the

100-DMA of 108.17. Resistance comes in the form of the 61.8% retracement of the

move from 109.47 to 108.11 at 108.95.

- Risk sentiment will focus on Italy over the coming days/weeks.