Yesterday's risk-on session saw..........>

DOLLAR-YEN: Yesterday's risk-on session saw USD/JPY swing both ways. Gains

registered over the Tokyo fix and beyond failed to bring a clearance of the

50-DMA and were more than wiped out in London hours. The rate failed to recoup

losses later on and finished the day in negative territory.

- Yomiuri reported that Japan plans to spend over Y30tn in its second extra

budget, which would top the first package. Per the report, spending will be

financed by new bond issuance.

- The rate trades -6 pips at Y107.48 as we type. Bears look for a drop below

Y107.30, where the rate bottomed out on May 19, before taking aim at May 13 low

of Y106.74. Bulls see the 50-DMA at Y107.91 as their initial target, followed by

Apr 16 & 17/19 highs of Y108.08/09. Above there opens Apr 10 high of Y108.59.

- Looking ahead, Japanese unemployment, retail sales, flash industrial output,

Tokyo CPI & housing starts are all due on Friday.