Updating time : 08/11/2007 00:13 GMT

USD/JPY - 112.60...Price finally took a 'nose-dive' y'day due to dlr's broad-based weakness, also, active unwinding of yen carry trades exacerbated intra-day decline n the greenback subsequently tumbled to 112.00 in Aust. session b4 staging a rebound due to much-worse-than-expected Japan's machinery orders, as Sep y/y figure came out at -7.0% vs prev. reading of -2.6%.

This week's selloff confirms the major decline fm 07' top at 124.14 has indeed resumed n re-test of previous low at 111.60 is on the cards. Looking ahead, as aforesaid major fall is at least retraceing MT intermediate rise fm101.67 (Jan 05'), 61.8% retracement of this move to 110.25 shud been seen later next week, therefore, one shud continue to sell the buck on 75-100 points rebound in anticipation of a resumption of recent decline.

On the upside, only a rise back abv 113.40 (50% r of y'day's fall fm 114.79-112.00 as well as NY high) wud defer present bearish scenario on dlr as such a move wud confirm a temp. low is finally in place n risk wud increase for a stronger retracement to 113.90/00 b4 prospect of another fall...

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