Usd/Jpy staged a relief rally in Asia,...>

DOLLAR-YEN: Usd/Jpy staged a relief rally in Asia, the pair recovered to Y111.82

after JGB purchases were maintained at a steady pace and denials of yesterday's

China treasury story emerged. As the risk-on theme spilled over into Europe, the

pair squeezed to Y111.88 before fading. Range trade has largely set in with a

convincing break either side of Y111-112 needed for the next move. Last Y111.61.

* Light on the US calendar today with Weekly Jobless Claims and PPI scheduled

for 1330GMT. The level of initial jobless claims is expected to fall by 5,000 to

245,000 in the January 6 New Year's week, reversing the previous week's gain

that lifted the four-week moving average by 3,500 to 241,750. Final demand PPI

is expected to rise 0.2% in Dec after 0.4% increases in the previous three

months.

* Option-expiries: Y111.50($290mn), Y112.50($210mn), Y113.00($290mn),

Y114.00($256mn).