USD/JPY last seen at Y106.14, 13 pips....>

DOLLAR-YEN: USD/JPY last seen at Y106.14, 13 pips lower on the day, after

tracking fluctuations in broader risk appetite. Early cautious mood inspired

modest USD/JPY sell-off, but the pair bounced from Y106.00 after the PBoC fixed

the central USD/CNY mid-point below the RTRS estimate (albeit above the key

CNY7.0 level). A stronger than exp. yuan fix revived risk appetite, driving the

Nikkei 225 back into positive territory. After making two unsuccessful attempts

at a breach of Y106.30, USD/JPY eased off a tad into the Asia/Europe crossover.

- A clean break below the Y106.00 barrier, which provided support overnight,

would please bears, drawing their attention to the lower Bollinger band (2%) at

Y105.86. Below there would bring yesterday's cycle low of Y105.50 back into

play. Meanwhile, bulls target the Y106.28 100-HMA, while the next layer of

resistance above is provided by Y106.65, the 76.4% retracement of YtD range.

- Japan has approved the first round of high-tech materials exports to South

Korea since tightening relevant export regulations last month.

- Japanese focus tomorrow turns to the flash reading of Q2 GDP, as well as 1-5 &

10-25+ Year BoJ Rinban ops.