USDJPY is up slightly on the day.........>

DOLLAR-YEN: USDJPY is up slightly on the day trading at 113.840 but the pair

remains shy of the key 114 level. The bigger picture trend remains bullish

though and a close back above 114 would target the Oct 4 & Nov 2017 highs at

114.55/73. 

- The pair is caught between rising US real yields on the one hand and signs of

risk-off sentiment in global stocks and yen crosses. AUDJPY remains clear of the

80.00 level but the bounce off here has been shallow. A break below 80.00 would

likely suggest further downside in USDJPY. EURJPY is also testing key 200-dma

support, which could have broad consequences for the yen.

- A break below the Oct 3 low at 113.530 in USDJPY would trigger a short-term

topping pattern that would open the Sep 28 low at 112.56 ahead of up trendline &

100-dma support at 111.29/19

- Japanese markets are closed today but will resume trading tomorrow amid a

heavy data docket including BOP, bankruptcy data, and Eco watchers survey

outlook.