The USD continued defensive through......>

DOLLAR-YEN: The USD continued defensive through Asia/Europe breaking the key

Y110 level in the process. Remarks from US Treasury Secretary Mnuchin that 'a

weaker USD is good for trade' further pressured to extended multi-month lows of

Y109.39, before meeting tech support from the 1.618% swing of Y110.19-111.48.

Minor recoveries in early NY have squeezed to the Y109.57/62 area. Next support

is seen at Y109.24/07 (Sep12 low, 76.4% Y107.32-114.74), there is reported

barrier interest behind at Y109.00.

- On the calendar today flash US Markit Manufacturing and Services PMI will be

published at 1445GMT.

- US NAR Existing Home Sales follow at 1500GMT. The pace of existing home sales

is expected to slip to a 5.70 million annual rate in December after a sharp rise

in November.

- Option expiries: Y109.20($532mn), Y109.50-60($604mn), Y110.79-80($615mn),

Y111.16-20($566mn).