USD/JPY has edged lower and last sits....>

DOLLAR-YEN: USD/JPY has edged lower and last sits 10 pips worse off, at Y106.37,

after yesterday's eventful session.

- The rate finished 52 pips higher Tuesday, despite edging lower initially on

early risk-off tone, fuelled by U.S. Tsy naming China a currency manipulator.

USD/JPY staged a decent recovery thereafter, helped by the PBoC action

supporting the yuan, which allowed risk assets to breathe a sigh of relief.

Another upswing followed as S&P 500 futures rallied into positive territory,

allowing USD/JPY to have a look above Y107.00. The rate then gave away some of

those gains, but remained elevated.

- Below the lower Bollinger band (2%) Y106.11 and the Y106.00 mark would open

yesterday's cycle low of Y105.52. The upside breach of the Jun 25 low of Y106.78

would please bulls, shifting their focus to the nearest round figure above.

- Ex-BoJ Off'l Hayakawa told MNI he thinks that the BoJ will be pressured into

additional easy policy as the economy slows in coming months.

- The summary of accounts from the latest BoJ meeting will be published shortly.

BoP data & Eco Watchers Survey hit tomorrow, while flash GDP is due on Friday.