USD/JPY has ticked lower and last........>

DOLLAR-YEN: USD/JPY has ticked lower and last deals at Y108.47 after finishing a

modest 2 pips lower yesterday.

- Wednesday saw USD/JPY drop into the European morning amid broader risk-off

flows. After bottoming at Y108.22, the pair proceeded to an upswing, albeit

stopped short of its intraday highs. Larger than exp. downticks in U.S. Y/Y CPI

and Core CPI interrupted recovery, but only briefly, and the rate operated just

shy of neutral levels ahead of the close.

- The rate charted a hanging man pattern yesterday, which suggests the

possibility of a bearish reversal. Traders are also reminded of the recent

bearish MA crossover (50-dma below 100-dma). Downside focus turns to the 200-HMA

at Y108.33 and a breach of the figure would bring the uptrend support at Y107.95

into view. Meanwhile, bulls need a move through the cloud Tenkan Sen at Y108.72

before challenging Y109.02, where the rate bottomed on May 13.

- Japanese BSI Large m'fing & all industry figures come out later today, ahead

of Friday's release of final industrial output data