USD/JPY has fallen ~15 pips in early.....>

DOLLAR-YEN: USD/JPY has fallen ~15 pips in early Asia-Pac trade and last deals

at Y110.54. The yen is drawing support from a soft opening in the Nikkei 225,

which last trades ~0.6% lower. As a reminder, the Nikkei 225 comes under

pressure from the fact that Topix is going ex-dividend today.

- Accordingly, yesterday saw the Nikkei 225 supported ahead of the Topix's

ex-dividend date. As a result, USD/JPY got off to a good start before extending

gains on the back of positive risk sentiment observed through the day. The rate

finished 67 pips higher, after touching the week's best levels.

- A descent through the cloud top and lower Bollinger band (2%), both located at

the psychological Y110.00 level, would shift bearish focus to yesterday's low of

Y109.94. Meanwhile, bulls look for a break above yesterday's peak at Y110.69,

which has also limited gains today.

- Japanese focus turns to Friday, which will see the release of domestic

industrial output, labour mkt data and Tokyo CPI, as well as BoJ 5-25+ Rinban

ops.