USD/JPY shed 42 pips in Asia-Pac.........>

DOLLAR-YEN: USD/JPY shed 42 pips in Asia-Pac trade, retreating from yesterday's

highs, as broader enthusiasm waned somewhat. The rate last deals at Y105.70.

- A dip below the cloud Tenkan Sen at Y105.62 would expose the lower 1.0% 10-DMA

envelope at Y105.09. Bulls look to return onto the Y106.00 handle before

challenging Y106.014, the 100-HMA.

- The spat between Japan and South Korea continues to expand into new areas

after Seoul carried out military training near islets claimed by Japan. FNN

cited a senior U.S. official as being critical of the drill. South Korean PM Lee

said that his country country may reconsider pulling out from an

intelligence-sharing pact with Japan, if a solution emerges before the deal

expires on Nov 23; Japanese Chief Cabinet Sec Suga replied that

intelligence-sharing & trade curbs shouldn't be linked.

- Japanese FinMin Aso noted that currency stability is important and watched by

off'ls; he said that FX matters were not discussed in recent talks with the U.S.

- BoJ's Suzuki speaks on Thursday, while Friday will see the release of Japanese

economic activity data, Tokyo CPI figures and the next round of BoJ Rinban ops.