USD/JPY holds steady at Y108.24 after....>

DOLLAR-YEN: USD/JPY holds steady at Y108.24 after climbing 33 pips yesterday.

- The pair advanced through yesterday's Asia-Pac session, with a slide in the

Nikkei 225 merely limiting the topside. USD/JPY struggled to break above the

23.6% fibo retracement from Y112.40 to Y106.78, located at Y108.11, and

retreated somewhat in the European morning, but picked up subsequently as better

than exp. U.S. retail sales inspired fresh demand for the greenback.

- Bulls would be pleased by a breach of the 200-HMA at Y108.33, which would open

up Y108.66, the 50-DMA. Bears look to the aforementioned Y108.11 level, which

also hosts the 100-HMA and the high of Jul 15. Below opens the 21-DMA, which

intersects right at the nearest round figure of Y108.00.

- Japan's trade row with South Korea remains closely watched. Regional media

reported that Korean PM Lee hinted at possibility of sending a special trade

envoy to Japan, while his FinMin Hong urged Japan to withdraw export curbs.

Chosun Ilbo reported that Seoul rejected Tokyo's arbitration process offer.

- Japanese trade balance comes out on Thursday, while national CPI figures will

be released on Friday.