USD/JPY last seen at Y111.86, almost.....>

DOLLAR-YEN: USD/JPY last seen at Y111.86, almost unch. on the day, after

climbing 14 pips Tuesday, with USD buoyed by strong domestic non-m'fing ISM &

new home sales.

- Worth mentioning the U.S. and Japan remain divided over including a currency

clause in a bilateral trade agreement they are preparing to negotiate.

- Bulls look to return above the Y112.00 mark before attempting a move at the

new YTD high of Y112.14, touched yesterday on the back of the aforementioned

U.S. data. On the downside, initial attention is drawn to yesterday's

low/100-HMA at Y111.72/68, followed by the Dec 21 high of Y111.46.

- Japanese focus this week turns to domestic GDP and BoP data (c/a balance &

trade balance) due Friday, as well as the usual BoJ Rinban ops. Elsewhere, BoJ's

Harada will speak at 0130GMT/1030JST.