USD/JPY range-bound so far, with.........>

DOLLAR-YEN: USD/JPY range-bound so far, with little reaction seen to the

admittedly somewhat outdated minutes from the BoJ's Sep monetary policy meeting.

Likewise, little reaction seen to final Jibun Bank services & composite PMIs out

of Japan, with both indices worse than flash estimates. USD/JPY sits at Y109.10,

6 pips lower on the day.

- Tuesday saw the rate push higher as optimism surrounding Sino-U.S. trade

relations kept yen purchases at bay. Gains were extended as firmer U.S. Tsy

yields & a beat in ISM non-m'fing buoyed the greenback. As a result, USD/JPY

closed above its 200-DMA for the first time since May & 58 pips better off.

- After bouncing off the channel support on Friday, the rate staged a dynamic

recovery manifested in a "three white soldiers" candlestick pattern. This shifts

focus to the key resistance at Y109.29/32, the highs of Oct 30/Aug 1, with the

61.8% retracement of the YtD range layered just above at Y109.37. Meanwhile,

bears would be pleased by a drop under the 23.6% retracement of the Oct bull mkt

at Y108.63, which would bring the channel support at Y108.12 into view.

- Looking ahead, Japanese earnings/spending figures are due on Friday.