USD/JPY added 27 pips overnight and......>

DOLLAR-YEN: USD/JPY added 27 pips overnight and last deals at Y107.98.

- Renewed demand for the pair was noted into the Tokyo fix, which resulted in a

short-lived breach of the Y108.00 figure, even as the Nikkei 225 was in the red.

- Press reports suggesting that several Chinese firms intend to buy U.S.

agricultural products and have therefore applied for tariff exemptions, as well

as paring Fed easing bets might have aided the rate to some degree.

- Bulls look for a convincing break above the Y108.00 mark, which would expose

Y108.11, the 23.6% fibo retracement of the Y112.40-Y106.78 slide. Above opens

the 50-DMA at Y108.53. Bears look to Y107.22/21, the lows of Jul 19/18.

- Japanese ruling coalition won Japan's upper house election as expected, but

failed to secure a 2/3 supermajority needed to change the constitution (more

specifically the pacifist sections thereof). PM Abe that he takes the result to

be a sign of approval for his gov't's policies, such as the sales tax hike.

- Flash Jubun Bank PMI readings are due on Wednesday, with Tokyo CPI due on

Friday. The next round of BoJ Rinban ops is scheduled for Friday. BoJ Gov Kuroda

will speak at the IMF in Washington later today.