USD/JPY picked up a bid yesterday,.......>

DOLLAR-YEN: USD/JPY picked up a bid yesterday, threatening to attack the Y108.00

mark. A failure to challenge that level entailed a pullback, but the rate still

finished the day slightly higher. Broader focus fell on flaring U.S.-China

tensions. In Japan, participants assessed the new stimulus package approved &

unveiled by the gov't. Officials will roll out Y117tn worth of measures financed

by the second extra budget, the largest one on record.

- USD/JPY sits at Y107.76, a touch higher on the day. Bulls look for a break

above Apr 16 & 17/May 19 highs of Y108.08/09 before taking aim at Apr 10 high of

Y108.59. Bears see May 19 low of Y107.30 as their initial target, followed by

May 13 low of Y106.74.

- Looking ahead, Japanese unemployment, retail sales, flash industrial output,

Tokyo CPI & housing starts are all due on Friday.