USD/JPY last trades at Y106.46, almost...>

DOLLAR-YEN: USD/JPY last trades at Y106.46, almost unchanged on the day.

- Risk-off mood allowed the yen to gain poise yesterday, with USD/JPY falling 18

pips on the day. Risk aversion was already evident in Asia-Pac hours and JPY was

reportedly bought vs. the Antipodeans, with another sell-off noted as London

traders came in. Despite moving away from lows, the rate dipped again as South

Korea decided to withdraw from an intelligence-sharing pact with Japan, amid

escalating bilateral tensions. Subsequent recovery ran out of fuel at the

intraday high of Y106.64, but disappointing prelim. readings of U.S. Markit PMIs

added fresh weight to the pair. Slightly hawkish comments from Fed's Harker

brought a modest reprieve, but the rate eased off again into the close.

- Bears would be pleased by a dip through the Aug 20 low of Y106.16 towards the

cloud Tenkan Sen at Y106.03. Meanwhile, bulls look to the 76.4% retracement of

the YtD range, which comes in at Y106.65, after the level capped gains during

the last two sessions. Above opens the Aug 13 high of Y106.98.

- Japanese CPI figures & BoJ 1-10 Year Rinban ops provide today's highlights.