USD/JPY last deals at Y108.12,...........>

DOLLAR-YEN: USD/JPY last deals at Y108.12, virtually unchanged on the day, with

local trade data coming up later today.

- Yesterday's fluctuations resulted in the formation of a Doji candlestick. A

negative open for the Nikkei 225 triggered an early downtick, before the rate

erased losses into the Tokyo fix, extending the move as Japanese Trade Min

Sugawara declared the nation's preparedness to release its oil reserves if

needed. Another leg higher was seen as U.S. industrial output data topped

expectations, but this was countered by USD woes linked to money-market matters.

- That said, the rate mostly traded sideways yesterday, as participants await

MonPol decisions from the FOMC (later today) and BoJ (Thursday).

- A clean break above the 76.4% fibo retracement of the Aug slide at Y108.17,

which capped gains on Monday, would open yesterday's peak at Y108.37. Bears look

for a pullback below Y108.00 before targeting the key support at Y107.46, which

hosts Monday's low and the 61.8% fibo retracement of the aforesaid range.

- BBG sources said rice was excluded from the initial U.S.-Japan trade accord.

- As a reminder, Japanese nationwide CPI comes out on Friday.