USD/JPY slipped 7 pips and last trades...>

DOLLAR-YEN: USD/JPY slipped 7 pips and last trades at Y108.16. The yen finished

the session atop the G10 pile, even as the Nikkei 225 operated in the green.

Some USD/JPY sales noted ahead of the Tokyo fix.

- Flash PMIs from Jibun Bank improved a touch vs. the prior readings, but no JPY

reaction was observed upon the release.

- A minor knee-jerk higher was registered as Koichi Hamada, an economic adviser

to PM Shinzo Abe, told Nikkei that the BoJ may need to act on the yen if U.S.

Fed engages in policy easing. Hamada disagreed with the view that the BoJ is

reaching the limits of how many JGBs it can buy and added that the central bank

should continue QE.

- Familiar technical levels are in play. The 21-DMA at Y108.08 remains the

initial bearish target, with a break opening the Jul 19 high/200-HMA at

Y107.98/97. Bulls look for a rebound and a breach of the trendline support at

Y108.28, which would bring the Y108.47 50-DMA into view.

- Tokyo CPI, due Friday, is the main data point on the Japanese docket during

the remainder of this week. Also on Friday, the BoJ will buy 10-25+ Year JGBs.