USD/JPY finished 34 pips lower...........>

DOLLAR-YEN: USD/JPY finished 34 pips lower Tuesday, weighed on by the broader

risk aversion, which elevated the yen atop the G10 pile. The Asia-Pac hours saw

the pair round trip to its intraday peak at Y111.58, yet failing to convincingly

break above the 200-DMA, after RTRS sources said that Third Point "is raising a

dedicated investment vehicle to target $500mn-$1bn in capital, so it can buy

more Sony shares," while Japanese Econ Min Motegi's stated that U.S.-Japan trade

talks will start next week. A pullback into the Tokyo fix was followed by

consolidation in the Y111.24-Y111.38 region in the Tokyo/London crossover,

before the pair declined further and tested the water below the Y111.00 mark,

pressured by soft equity performance in Europe & NY.

- USD/JPY last seen unchanged at Y111.14.

- Bears look for extending yesterday's losses through the 21-DMA (Y111.08) &

yesterday's low (Y110.98), towards the cloud Tenkan Sen at Y110.92. Bulls look

for reclaiming the 200-DMA at Y111.50.

- Japanese PPI, core machine orders & comments from BoJ Gov Kuroda are all due

later today, as are BoJ 5-10 Rinban ops.