USD/JPY last deals at Y106.57,...........>

DOLLAR-YEN: USD/JPY last deals at Y106.57, slightly lower on the day.

- Improving risk sentiment propped up the pair on Weds, allowing it to add 29

pips through the day. A combination of a BBG report re: permission for a

Japanese material maker to resume shipments to S. Korea, a slightly firmer than

exp. PBoC fix & signs of U.S. willingness to engage with N. Korea fed optimism

in the Asia-Pac session, and the positive mood remained. Some volatility was

noted upon the release of the less dovish than hoped FOMC minutes.

- The 76.4% fibo retracement of the YtD range at Y106.65 limited gains on

Wednesday. Above here would expose the Aug 13 high of Y106.98. Bears look to

Tuesday's low of Y106.16.

- Foreign Mins from Japan, S. Korea, and China met yesterday, reaffirming their

commitment to creating a tripartite free-trade zone & to finalising a 16-nation

Asian trade accord by the year-end. Japanese Foreign Min Kono called the dispute

over wartime labourers the biggest bilateral issue dividing Tokyo and Seoul.

- Flash Jibun Bank PMI readings for Japan take focus today, ahead of the release

of national CPI numbers on Friday.