USD/JPY last sits at Y111.68, 3 pips.....>

DOLLAR-YEN: USD/JPY last sits at Y111.68, 3 pips higher on the day, with

liquidity limited due to the Japanese Golden Week holidays.

- The rate inched higher in yesterday's Asia-Pac trade, as Japan began its

week-long national holidays. USD/JPY extended gains through the London & early

NY hours, topping out at Y111.90 on the back of firmer U.S. Tsy yields.

Subsequent decline did not suffice to fully erase earlier gains and the rate

closed 7 pips better off.

- A return above the 21-DMA, which comes in at Y111.72, would bring the

psychological Y112.00 level back into play. Meanwhile, bears need a fall below

the 200-DMA at Y111.51 to shift the focus back to the downside. This would

encourage them to challenge Y111.35, which represents the 50-DMA and has not

been breached this month.

- Japanese Nikkei m'fing PMI (f) comes out tomorrow.